International Maritime Human Resource Management textbook modules
Modules author: Maria Anne Wagtmann, PhD, mariaannewagtmann@yahoo.com
1
You have opened a document with a module of a planned textbook to a course in International Maritime Human Resource Management. The course and textbook were not completed however. Therefore, one of the planned authors, Maria Anne Wagtmann, wishes to share the course modules she wrote with the public, while still retaining the copyright. Thus, these materials may be downloaded by anyone interested and information about the URLs at which they are placed may be passed on to others.
The overview of entire envisioned course was as follows (total course content: 7.5 ECTS; total 4.0 ECTS based on external content): 1. Shore-based HRM (1.5 ECTS, 0.5 ECTS based on external content) written by Maria Anne Wagtmann 2. HRM on board ships and in the ship-shore interface, including occupational safety, psychological and health issues (1.5 ECTS, 1.0 ECTS based on external content) to be written by another author 3. Wage and benefit creation, role of unions and employers organisations (1.5 ECTS, 1.0 ECTS based on external content) written by Maria Anne Wagtmann 4. Labour conditions regulation on land and on board ship (1.5 ECTS, 1.0 ECTS based on external content) partially written by Maria Anne Wagtmann, part to be written by another author 5. Personnel selection, retention and career planning, planning and investment in education and training (1.5 ECTS, 0.5 ECTS based on external content) written by Maria Anne Wagtmann
Elaboration of each course element written by Maria Anne Wagtmann 1. Shore-based HRM (1.5 ECTS, 0.5 ECTS based on external content) A. Role of HRM ideal and true roles, operational tasks, possible strategy implementation B. Organisational structure and culture C. Variation according to maritime firm type, with focus on ports and port firms D. Variation of HR practices across regions and firms E. International HR and HR coordination F. Ethical issues
3. Wage and benefit creation, role of unions and employers organisations (1.5 ECTS, 1.0 ECTS based on external content) A. Neo-classical wage equilibrium models B. Wages and benefits as motivation factors C. Performance-based pay D. Unions in general, in maritime transport, national variations and ITF E. Employers organisations in maritime transport, national variations and F. Collective bargaining at national level and in the international bargaining forum
4. A Labour conditions regulation on land and on board ship (1.5 ECTS, 1.0 ECTS based on external content) A. ILO, EU and national regulation of labour conditions on land, including the roles of occupational health and safety authorities and other authorities and institutions B. ILOs 2006 Maritime Labour Convention (partially written by Maria Anne Wagtmann)
5. Personnel selection, retention and career planning, planning and investment in education and training (1.5 ECTS, 0.5 ECTS based on external content) A. Variations in selection processes and legislation for shore and ship-based positions B. Assessing personal and professional qualifications, including psychological, cognitive and skills tests C. Employee retention and career planning plans D. Planning education and training E. Investing in education and training at home and abroad, with focus on MET in economies of transition and developing countries MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 1
1 HUMAN RESOURCE MANAGEMENT AS A FIELD OF PRACTICE AND OF STUDY 1.1 Introduction In this introductory section, we will take a global perspective and make some remarks that are not specific to the world of maritime transportation, but concern all industries. First, practices concerning firms and organisations personnel-related work have varied a great deal across countries and continents and from firm to firm or organisation to organisation. Moreover, practices have developed over time, as societies have progressed and new technologies have enabled new methods of production and working. Here it is worth mentioning that the term human resources management appeared in the United States in the 1980s as a response to the specific competitive and market challenges that firms in this country perceived that they were facing, including a growing inability of U.S. industrial firms to compete with their Japanese competitors. In this context, human resource management was developed to improve the competitiveness of the U.S. firms while at the same time en- compassing elements that emphasized the positive value of individuals to the firm to a great- er extent than the management and organisational theories that had been prevalent in the United States from the 1920s- 1960s had done. At the operational or daily management level, all firms and organisations must solve funda- mental human resource management tasks such as: o Recruiting employees and, when necessary, terminating their employment o Motivating employees and seeking to retain useful employees o Utilizing employees knowledge, skills and capabilities in an optimal manner in the daily work to be undertaken o Ensuring the employees work in accordance to the firm or organisations policies and goals in their daily work o Ensuring that employees obey laws, safety, security, and health-related rules and practices, task-related rules and practices, methodological procedures for completion of tasks, etc. in their daily work o Ensuring that the firms personnel procedures are in constant accordance with the underlying legal rules as well as established safety and health-related rules and practices, task-related rules and practices, methodological procedures for completion of certain tasks, etc. However, the ways in which these things are approached vary according to, e.g., national, supranational (e.g., EU-) and/or in some countries even regional legislation, cultural traditions, traditions and practices in various industries or firms. Moreover institutions such as the media (concerning, e.g., the prevalence of job announcements in printed media versus the prevalence of job announcements on internet sites), employment agencies, occupational health authorities vary somewhat from country to country, which also leads to differences in human resource management approaches. In additional to the daily or operational tasks, work with employee-related matters may also include higher level or, in other words, more strategic human resource tasks, e.g.: o Developing plans to increase employees knowledge, skills and competencies MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 2
o Creating educational or training programs for employees and potential employees, possible in connection with external units o Providing inputs to the overall business or organisation strategy or feedback concerning its implementation and/or adjustment o Developing and implementing corporate strategy o Developing methods to measure the presentation of a division or of an individual employee, the quality of a process or of the implementation of legal, safety and health- related, task-related or methodological rules Based on the above, practitioner and persons who study personnel-related work may chose to view such work in four alternative ways or in some combination of these ways (Nielsen 2000, pp.37-9): 1. A strategic planning perspective: Here, the normative expectation and assumption is that all personnel-related work should be aligned to help the organisation reach its strategic goals. 2. A negotiated social relations perspective: Here, the assumption is that all parties are involved in either explicit or tacit negotiations about the tasks at hand and how they are to be undertaken. Here much focus is put on description of (a) the current situation of negotiated agreements and (b) the explicit or tacit negotiation structure and patterns. Knowledge of (a) and (b) may help practitioners and researchers create possible future scenarios of such negotiated agreements. 3. A social power structure perspective: Similar to perspective 2, in this third perspective, the assumption that all parties are somehow involved in either explicit or tacit negotiations about the tasks at hand and how they are to be undertaken is maintained. However, this perspective also focuses on the facts that power is distributed unevenly between the various actors and the possibilities and limits of various actors for using their power to achieve the outcome they would desire. Once again, similar to perspective 2, focus is commonly placed on description of (a) the current situation of negotiated agreements and (b) the explicit or tacit negotiation structure and patterns, with the possible aim of being able to create plausible future scenarios of negotiated agreements that take the power dynamics into account. 4. The reactive and ad hoc perspective: Here, the assumption is that work with personnel-related issues does not have a high status within the firm or organisation and that such work is conducted on a reactive or ad hoc basis when deemed necessary, without attention to strategic or preparatory work. Here, practitioners and observers will seek to describe the situation, but for employees who consider themselves or have been appointed as human resource specialists, as this is a less desired situation. Therefore, they will seek to give their work more importance, if possible in the given organisational context. In practice, the characteristics of the concrete situation at hand in a firm or organisation and the actual need should determine which perspective(s) are used in a concrete analytical situation. For example, in a governmental organisation such as a national maritime authority, it is often assumed that the goals of the authority are determined by and/or derived from the political system, e.g. the legislators and the government in power. This determination of goals from above might justify the use of a strategic planning perspective when addressing issues of how to motivate employees to reach the specified goals. If, however, at the same MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 3
time the national maritime authority is staffed by persons represented by a number of powerful unions or professional organisations, it might also be relevant use the social power structure perspective to study how policy implementation actually functions. Finally, if the national maritime authority is insufficiently funded and thus has not been able to practice strategic personnel management, this might result in reactive and ad hoc implementation of personnel policies that are not necessarily in congruence with the political function and aims of the authority. In this case, a descriptive study of the reactive and ad hoc personnel work might shed light on the extent to which the small amount of personnel-related work either positively or negatively reinforces the stated organisational aims. Similarly, in private sector firms, one also will find many firms that only work with human resource management in a reactive and ad hoc way, whereas in other private sector firms, strategic human resource planning may be successfully attempted. Finally in yet other firms, all actors may feel that they have some say in human resource issues, which might mean that analysis of the possibilities and limits to human resource management using either the negotiated social relations perspective or the social power structure perspective might be important in daily human resource management work, especially with regard to ensuring a successful implementation of policies. 1.2 More about strategy and strategic planning In relation to the previous subsections discussion of the four alternative perspectives on human resource management, it must be mentioned that there are different ways of viewing strategy as well. In the traditional strategic planning work, strategy making is essentially a top-down process, in that the strategy is determined and dictated by the top management of the firm or organisation, after a rational analysis of economic, technological and market trends as well as inputs from employees at various levels. Finally, after the strategy has been decided by top management, implementation follows in the units of the organisation in question. This linear process-viewpoint is depicted below in Figure 1; it harmonizes well with the first perspective on human resource management mentioned in the previous section, i.e. the strategic planning perspective.
Figure 1. The traditional viewpoint on strategic planning
Analysis of external competitive environment and internal strengths & weaknesses Top Management's Decision about which strategy to follow Implementation of the chosen strategy in organisational units MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 4
Although the traditional viewpoint states that it is possible and also advisable to revise strategy as time passes, the linear process aspect of the traditional viewpoint is often perceived as less suited in very volatile and/or unpredictable markets. In such markets, many strategy experts argue that the analysis, decision and implementation efforts must be on- going and occur concurrently. Moreover, some practitioners and academics who examine actual work with personnel issues from the negotiated social relations and the social power structure perspectives may wish to focus on the constant processes of tacit or explicit negotiation that are going on at various levels in the organisation. In these cases, the so- called organic (see Ford et al., 2003) approach to strategy formulation may be more relevant as the point of departure. Figure 2. The organic approach: Concurrent strategy formulation, revision and implementation
In the organic viewpoint, the problem of the often unrealistic assumption of linearity in the decision-making process, i.e., the aforementioned inherent problem in the strategic planning perspective, is solved. Moreover, the organic viewpoint is more in line with the on-going negotiations between human actors that are an inherent part of the negotiated social relations and the social power structure perspectives. However, there is another inherent danger in the organic viewpoint: The overall strategic direction may be lost, as negotiations about issues of strategic and non-strategic importance may be conducted alongside each other, thus muddying the overall picture of what is most important in the long term seen from one or more possible future scenarios. This means that here there is the inherent danger that not only the personnel-related work may become ad hoc and reactive; instead the entire direction of firm or organisational development may become so. 1.3 Models of Strategic Human Resource Management An influential team of researchers at Harvard Business School (Beer et al., 1984) developed one of the most well-known models of strategic human resource management, which has served to inspire practice and the framework for a huge number of studies. Thus their work is commonly referred to the Harvard model of human resource management. In their view, Gathering knowledge about current & future external and internal circumstances Generating implementation and other action related to the strategies and policies which are constantly being formulated Formulating strategies and policies based on knowledge of current and future circumstances MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 5
human resource departments, managers and employees fundamentally work with the management and coordination of four policy issues: 1. Managing human resources, in both quantitative (e.g. amount of human resources in an organisation at any given current or future time) and qualitative (e.g. efficiency and other performance criteria) terms 2. Managing reward systems, which include designing and monitoring pay and supplementary benefit systems such that the organisation is able to attract and retain sufficiently qualified and motivated employees 3. Managing command and employee input systems, i.e. controlling the degree of top- down authority and, conversely, the extent and nature of employee inputs in relation to the organisation of the workplace and the fulfilment of the tasks 4. Optimizing work systems, or in other words designing the organisational patterns in the firm and the specific jobs and their descriptions to ensure productivity and efficient use of sources The Harvard model also accounts for existing external and internal circumstances, in that it specifies that human resource management policies should be chosen based on analysis of these things and then the actual outcomes of the chosen policies should also be measured. Finally, the Harvard model recognizes that the chosen human resource policies also have long-term consequences for the organisation itself, its internal stakeholders (here most importantly the employees, but also the owners) as well as for the society in which the organisation is placed. These linkages are depicted in Figure 3 below. Figure 3. The Harvard Model of Human Resource Management (adaptation of Beer et al., 1984, p.16)
In relation to Figure 3, relevant stakeholders (A) include, e.g., employee categories and individual employees, including managers, the owners or shareholders of the company, organisations such as unions or employers organisations, the community at large, the government, etc. The situational factors (B) encompass workforce and labour market characteristics such as the degree of unionisation and employer organisation in employers organisation as well as the business climate, competitive conditions, managements philisophy, technology, laws, and societal values. The four areas of HRM policy choices (D) have already been explained by the above four points, these are measured in terms of outcomes (D) related to e.g. cost-effectiveness, employee and organisational competence and stakeholder commitment. Finally the (E) long- term consequences affect individual stakeholders and their well-being, the effectiveness and competitiveness of the organisation and the well-being of society at large. These wide- ranging consequences may also, especially in the case of larger or more influential firms and public sector organisations have some input on the profiles of the stakeholders (A) and situational factors(B) themselves, hence the dotted arrow from Box E back to the box which contains the policy decision input variables A and B. A. Stakeholders B. Situational Factors C. HRM Policy Choices D. HR Outcomes E. Long-term Consequences of HR Policies MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 6
As depicted above, the Harvard Model of Human Resource Management is also suitable in the traditional strategic planning scenario of Figure 1. In the case of top management strategic planning, the strategic plans could be regarded as the determining situational factors (B) in relation to the HRM policy choices. In contrast, in the case of the organic emergence of strategy (Figure 2), the elements of Figure 3 could be regrouped as indicated in Figure 4 below. Figure 4. An Organic Approach to Human Resource Management
In Figure 4, the definitions of the five variable types from the Harvard Model (Beer et al., 1984) remain the same. It is only the time order that is changed, such that all activities are in fact occurring concurrently, due to volatile and/or unpredictable markets. 1.4 Human Resource Management Strategy in Maritime Industries Secondary sources (e.g., Goulielmos & Plomaritou, 2009; Midoro et al., 2005; Panayides, 2001; Pando et al., 2005; Slack et al., 2002) suggest that traditional strategic planning is attempted by ports of all sizes and by larger shipowners in the global shipping industry as well as by the majority ship management companies that offer more standardized solutions. However, among some of a small number of the ship management companies that are specialised in offering less standardized and more customized services to specific customers, in whom they also invest a large amount, the organic approach to strategy seems to be found (see Panayides, 2001, pp.85-100). Moreover, it is conceivable that shipping companies that specialize in the transport of certain infrequently shipped dangerous goods or the transportation of very large pieces of equipment which cannot be separated or of other less standardised shipments may be less able to perform traditional strategic planning, as the demand for these types of shipping services and the specific nature of what will be demanded is much less predictable. Concerning the global shipping, ship management and crew management industries, one unique characteristic of human resource management work is the situational factor that due to the use of so-called open ship registers, ships crew members can be chosen from a number of different countries, meaning that there may be one country of the ships ownership or possession (for the case of leased ships), a second country in which the ship is registered, Inputs and influence of (A) Stakeholders and (B) Situational factors Monitoring of (D) Concrete HR Outcomes and (E) Longer-term Consequences of HR Policy accross Time (C) Optimization of HRM Policy Choices MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 7
while the crew members may come from a yet third or perhaps third, fourth and fifth countries. This unique circumstance has profound consequences for all four elements of HRM policy choices (point C in Figures 3 and 4). Concerning HRM policy choice area 1, Managing human resources, stakeholders in mari- time industries often perceive that there are qualitative differences between seafarers from various nations in terms of, e.g., accident rates, efficiency in relation to specific tasks (see, e.g., Theotokas et al., 2006); some of these, e.g. variations in accident rates, have also been verified in research (Hansen et al., 2008). Moreover, there are some variations between various flag states offering open register services with regard to quantitative measures such as minimum manning requirements. Concerning reward systems, which compose HRM policy choice area 2, seafarers are commonly paid according to agreements and pay scales made in their country of domicile; these vary substantially (OECD, 2003, p. 51), as do the nature of benefits offered and demanded (Brown & Brown, 2008). Both general and maritime-specific industry research indicates that expectations concerning command and employee input systems (HRM policy choice area 3) used on board ship also vary from country to country (Gerstenberger & Welke, 2008; Kahveci & Sampson, 2001; Wang & Gu, 2005). These complexities, which are all related to the multinational work force, service to make the final policy choice area 4, optimizing work systems, a much more difficult task than would be the case for the commonplace land-based workforce, which is usually composed of residents of one country or, in border regions, of neighbouring countries in proximity. Here, in relation to the choice of nationality of the seafarers and the choice of the flag state, shipowners generally seek to maintain their right to determine these issues, also in cases where they use external ship management or crewing firms (Mitroussi, 2004, p.37). Thus ship management or crewing firms should also regard the preferences of this key external stakeholder, namely the shipowner, concerning crew nationalities and flag states as externally given situational factors (point B in Figures 3 and 4) that must be respected. Given the situational factors of multinational labour markets and shipowners preferences for certain crew nationalities and flag states, in section 4 of this module, we will address the issue of national variations in shipping industry HR practices in general terms, with further examples from firms practice. Following this, section 5 will deal with how HR efforts may be coordinated internationally, and when this is advantageous. Module 2 will deal with HRM on board ships, and, as such, will focus on issues specific to the management of human resources, reward systems, command and crew inputs systems, and the optimization of work systems on board ship, taking the situational factors of legal regulations and other stakeholder requirements (e.g., in the tanker industry, the vetting system and oil company requirements) into account. In Module 3, the wage and benefit elements of reward systems come into focus, as Module 3 deals with wage and benefit creation as well as with employee relations, i.e. relations between unions, employers, and in some circumstances also employers associations. As ships can be dangerous workplaces, the regulation of occupational safety and health are the main focus of Module 4; its latter part deals with the regulation of occupational safety and health in sea-based workplaces and with the shipping or ship management companys human resource departments work in this area. Finally, Module 5 deals with personnel selection retention, career planning and planning and investment in education and training; thus its focus is on the quantitative and qualitative aspects of issue 1 (Managing human resources) in the above FIgures 3 and 4s element (C), Human Resource Policy Choices. However, in connection with this qualitative and quantitative focus on managing human resources, also underlying situational factors (B) and MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 8
stakeholder preferences (A) as well as measuring the outcomes (D) will also be dealt with for the shipping sector in Module 5. Turning now to ports, their own workforces are typically less multinational, although, e.g., in some Western European countries, many newly arrived resident immigrants are commonly found among port workforces. However, another type of multinational complexity comes into play in the cooperation between visiting ships crews and the ports employees (e.g,. dockers) and/or the employees of both various firms and public authorities operating in the port. Here, misunderstandings may occur concerning port state control, ship loading and unloading procedures, procedures for ship-based waste collection, rules concerning leaving ship, security and occupational safety and health rules in the port in question, as the visiting ships crews are not familiar with the local circumstances in the port. However, it is also possible though an optimal information policy to seek to minimize such misunderstandings. There are multiple organisational constellations under which ports are operated around the world. If the take the service port model, it covers the organisational constellations in which a governmental port authority or private sector port operating unit owns and maintains all of the ports facilities. In contrast, in the landlord model, the infrastructure in the sea and on shore is owned by a port authority, whereas private enterprises enter into usually long-term leases of quay and other port areas that enable them to own and run the warehouses, handling equipment, administrative buildings, etc. and also provide stevedoring and possibly other services such as pilotage as business services. Between these extremes, there are also intermediate organisational constellations such as, e.g., the tool port, in which a landlord provides almost everything except for, e.g., stevedoring facilities, which are delegated to private enterprises. Today the global trend goes toward more and more ports being organised in the landlord model (World Bank, 2008a, p.83). In the landlord model, in many instances a given port firm is dependent on other firms and the port authority; this situational factor (B, according to Figures 3 and 4) means that the internal optimization of HRM policy choices must also be conducted in a way that ensures optimality of cooperation with these other actors, to which the firm in question does not have as direct control over as over its own employees. This lack of direct control over some of the activities that one needs for own operations also makes the port firm in questions assessments of (D, again in relation to Figures 3 and 4) concrete HR outcomes and (E, ditto) longer-term consequences of own HR policy across time more difficult to undertake. Here, in many circumstances, it is difficult to determine what is the result of own HR policies and what is the result of the external situational factors (B), i.e. the policies of other firms and the port authority. In Section 2.1 and its accompanying Structured Assignment 1.4, we will return to look at these different port organisational structures in greater detail. However, we now turn to our first structured assignments, which are partially based on the readings of Subsections 1.1 to 1.4.
1.4.1 Structured Assignment 1.1 A Shipowning Firms HR Departments Work with Ship Management and Crewing Firms Imaging that you work in the HR department of a major shipowning firm. In your firm, some of the ships are managed in house, with the use of external crewing agencies, and other ships are managed by ship management companies, who also are responsible for crewing the ships. Based on the discussion of (a) the operational or daily management level versus (b) the strategic level, write either (a) or (b), to indicate whether you would classify each of the MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 9
following tasks as either being (a) operational or daily management tasks or (b) strategic level tasks: ________ Development of methods and tools to control the performance of ship management bureau with regard to management of crew ________ Regular assessments of whether the ship management and crewing companies are fulfilling their contractual responsibilities ________ Trouble-shooting communicative activities on a daily basis ________ Providing a report on general HR efficiency and effectiveness in relation to safety, security, punctuality and environment related criteria to top management,i n preparation for the revision of their policy concerning which ships are to be managed in house and which by external ship management firms ________ Work with the revision of contracts with the crewing agencies or the contractual clauses concerinng crewing in the ship management contracts when legislative changes make this advisable 1.4.2 Structured Assignment 1.2 External perspectives on Human Resource Management Question 1. For this first question, read the following English-language Wikipedia article: Human resource management: http://en.wikipedia.org/wiki/Human_resource_management After this, you must solve either question A or B: 1. If you speak one or more other languages than English, please provide possible translations of the term Human resource management in each language that you speak. Then go on the Wikipedia sites of the languages that you speak and look for the terms. If you find one or more article about these terms, you must assess one article; if you do not find any Wikipedia articles in the languages that you speak, please solve question B below. If you have found one or more relevant article, you must compare the content of one of the articles with the content of the above Wikipedia article, discussing how much overlap is there is content across language boundaries and how many differences there are. If you perceive differences, please elaborate on possible reasons for such differences. When you write about these things, please provide the exact name of the article in the foreign language and the internet address on which it is found. You may write up to 500 words if you chose and beyond that also include own full bibliographical references to other relevant literature you have read, if you so choose.
2. If you only speak English or if you were unable to locate suitable articles for comparison to solve question A above, please go to HR Profession Map of the UK-based Chartered Institute of Personnel and Development (CIPD), which is found at: http://www.cipd.co.uk/hr-profession-map/professional-areas. Here, compare the content of the above Wikipedia article with the content of the information about Professional Areas, including the linked CIPD web pages that treat each of the following Professional Areas: o Strategy insights and solutions o Leading and managing the human resources function o Organisation design o Organisation development MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 10
o Resourcing and talent planning o Learning and talent development o Performance and reward o Employee engagement o Employee relations o Service delivery and information In your comparison, you must discuss how much overlap is there is content across language boundaries and how many differences there are. If you perceive differences, please elaborate on possible reasons for such differences. When you write about these things, please provide the exact name of the article in the foreign language and the internet address on which it is found. You may write up to 500 words if you chose and beyond that also include own full bibliographical references to other relevant literature you have read, if you so choose. Question 2: For this second question, first read the following English-language Wikipedia articles: Scientific management/Taylorism: http://en.wikipedia.org/wiki/Taylorism Fordism: http://en.wikipedia.org/wiki/Fordism Post-fordism: http://en.wikipedia.org/wiki/Post-fordism Based on your previous knowledge of the maritime transportation and ports sectors, please discuss the extent to which you believe these sectors are marked by elements of Scientific management, Fordism, Post-Fordism in their production chains. DIscuss after this which implications you believe that these elements have for the human resource management function in individual firms or organisations in these sectors. You may write up to 500 words if you chose and beyond that also include own full bibliographical references to other relevant literature you have read, if you so choose. 1.4.3 Structured Assignment 1.3 Incorporating HR Needs into the Ship Procurement Function For this structured assignment, please read the section Trends in Marine Engineering Systems, which is found on pp. 4-7 of Pomeroy, V. 2006. Perception and management of risk-dependence on people and systems. Paper presented at the World Maritime Technology Conference, London, UK, March 2006. London, UK: Lloyds Register. Available at: http://www.he-alert.org/documents/published/he00580.pdf [accessed 13th March 2010]. 1. In no more than 300 words, summarise the arguments of the Trends in Marine Engineering Systems section as to how shipboard system design may affect (a) efficiency of ship operations and (b) a ships safety profile. 2. Imagine that you work in the in-house crewing and shore-based ship HR department of a shipping firm which is planning on ordering new ships. Based on your answer to question 1, describe what the ideal role of your HR department should be in your opinion, in relation to the creation of the shipboard system design specifications. Please write no more than 500 words in your answer; in addition to your answer, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 3. Please indicate where you would place the ideal role of your HR department as described in your answer to question 2 above in relation to the Harvard Model of HR Management MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 11
(see, e.g., Figure 3), including the four policy issues. Moreover, please indicate which (A) stakeholder and (B) situation factor-related constraints may impede your HR department from being able to fulfil the ideal role you describe. Please write no more than 500 words; in additional to your answer, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 12
2 INTRODUCTION TO ORGANISATIONAL STRUCTURES AND CULTURES 2.1 Organisational structures Similar to the situation elucidated in the introductory sections 1.1 1.3 and structured assign- ment 1.2, in which it was shown that there are multiple models of the strategy-making process and multiple conceptualisations of the human resource management function, there are a plethora of frameworks for classifying the various functions performed by various units in businesses and other organisations. However, Mintzberg (1983) is one of the best-known generalising contributions, so we will take our point of departure in his work. According to him (ibid., pp. 261-264), firms and organisations can be divided into five elements: o An operating core, which is composed of those employees who perform the work related to the production of the firms or organisations products and services. o A strategic apex that is made up of the top-level management who are entrusted with the overall responsibility for the firm or organisations functioning and development. o A middle line of middle managers, who are the bridge between the operating core and the strategic apex. o A technostructure composed of experts or analytical employees whose task is to monitor and analyse processes to ensure efficiencies by ensuring that economies of scale and scope concerning non-human resources are utilized optimally. o Support staff make up the final element. These include, e.g., receptionists, cleaning and facility maintenance workers and other individuals that perform support services for the organisation. In relation to the HR department or the collection of employees that work with HR, there are multiple possibilities for their placement in the organisations elements. In an organisation that takes a strategic planning perspective on human resource management (Nielsen 2000, pp. 37-39, as described in Subsection 1.1), the head of a human resource department might be placed in the strategic apex, with the other HR department employees working in the technostructure and/or middle line. This would also be the expectation in the de facto situa- tions in which the firms leadership in the strategic apex is seeking to develop and implement strategy, yet faced with the de facto need to negotiate about the acceptance of its proposed strategies and their implementation with the other personnel groups (i.e. the negotiated social relations scenario and social power structure scenarios, see ibid.). In contrast, in the reactive and ad hoc perspective on personnel management (see ibid.), one might find that the persons who work with personnel matters are placed mainly or solely among the support staff. Based on the description of the above five elements of organisations, five different types of organisational constellations are possible, according to Mintzberg (1983). When control is centralized in the strategic apex and the role of the middle line and technostructures are relatively small, then one can speak about a simple organisational structure. This is the typical structure that one finds in a small firm or an entrepreneurial firm started by one or a few individuals. The chain of command is relatively short and straightforward in such a centrally controlled firm, as depicted in Figure 5 below, meaning that who is accountable for MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 13
what and to whom is also relatively easily to determine. Moreover, such a simple structure most often economises the need for elaborate procedural systems and systems of control, thus also minimising the resources spent on maintaining these systems (Edstrm & Galbraith 1977). However, as an organisation grows, it is difficult to maintain such a simple structure, and the middle line layer of management is typically added, and the technostructure strengthened and separated from the other support staff. Figure 5. The Simple Organisational Structure
In the second type of organisational constellation, the engineering and/or organisational analysists in the technostructure are relatively dominant in the organisation configuration, and emphasis is being placed on efficiency, i.e. the utilisation economies of scale and scope. This type of organisational constellation is termed by Mintzberg (1983) as the machine bureaucracy and is depicted below in Figure 6. Figure 6. The Machine Bureaucracy
The machine bureaucracys strength is that the engineering and organisational specialists of the technostructure enable this organisation to, in the case of mass or large batch production, perform standardized activities in a highly efficient manner, also ensuring effectiveness in relation to specific quality specifications for, e.g., the output (e.g. service or product specifications) or process (e.g. concerning energy efficiency or minimizing harmful wastes). In the case of expensive non-human resource units of input to the operating core, the technostructure can also seek to optimize economies of scope by matching the stocks and flows of these inputs to the, e.g., batch production plans. Here, however, as the technostructures employees are experts that input into the strategic planning of the strategic apex, and the resultant strategic plans are then implemented in the MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 14
operating core with the assistance of the middle line personnel, there is a chance that the expert recommendatons of the technostructure will not be implemented the way in which the technostructure has specified, which may mean that the calculated efficiences will not be reached. Conversely, the technostructure may work in a too theoretical manner with the efficiency calculations and actually produce suggestions which cannot be fully implemented as suggested. Finally, even if the coordination between the technostructures proposals for efficiency and their implementation is unproblematic, the technostructure is most often inherently one- sidedly internally oriented i.e. toward organisational and production process optimization. This is good with respect to ensuring production efficiency, yet at the same time, other persons in the firm must also ensure that what is being produced and will be produced in the future meets current and future market demands in a competitively optimal manner. Here, this organisational form does not ensure in itself a competitive offering in relation to market dynamics, as it is relatively one-sidedly concerned with internal efficiencies. However, this problem can be offset through sufficient market and competitive attention in the strategic apex, with the potential input of other personnel in the other functions, who also have direct customer contact. In the more advanced and hierarchical mode of the machine bureaucracy, so-called bureaucratic procedures of control (Weber, 1922, see also Edstrm & Galbraith, 1977) come into play. These include calculation and assessment methods based on established metho- dological and administrative procedures to limit random or non-systematic individual discre- tion in decision making. These methods also enable the delegation of decisions downward in the hierarchy, as long as the procedures are followed and in cases of questions, superiors are consulted. The third organisational constellation is also to some extent bureaucratic in nature, meaning that it also relies to a certain extent on the so-called bureaucratic procedures of control. However, it is marked by relatively highly educated and knowledgeable employees perfor- ming tasks that require such expertise. Therefore it is termed the professional bureaucracy, and is depicted in Figure 7 on the next page. In the professional bureaucracy, the operating core has relatively large power, as the production activities and competitive success of the firm or organisation in question are highl- y dependent upon the optimal deployment and development of skills by the employees of the operating core. Examples of such organisations or firms are, e.g., a university or other major library, the International Maritime Organisation, a maritime engineering consultancy firm. In such a firm, neither the top or middle management have as much control as in the other organisation types, as individual task decisions about many issues must be left to the discretion of the individual professional in the operating core, meaning that the bureaucratic control procedures here cannot encompass all issues. Due to this problematic, Lwendahl (2000, p.62) has metaphorically compared the management challenges in such professional service firms as the challenge of herding cats. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 15
Figure 7. The Professional Bureaucracy
However, the extent of this problem varies greatly from professional bureaucracy to professional bureaucracy, due to the nature of the underlying knowledge or the demands of clients for personalised services (ibid., Alvesson, 1994). Here, especially those firms who are able to develop a core portfolio of services, methods and solutions, which find market acceptance, will also be able to use bureaucratic mechanisms of control (Lwendahl, 2000, p. 122-3). An example of this would be the management consultancy whose technostructure has developed some standardized organisational assessment and reorganisation prescrip- tions or some standardised employee coaching packages for certain circumstances. The fourth organisational constellation is especially found in the largest firms, organisations and concerns; it is the so-called divisional structure, as depicted in Figure 8 on the next page. The divisional structure is also a bureaucratic type of organisation, in that control through the uniform implementation of, e.g., calculation, assessment and controlling methods based on established methodological and administrative procedures to limit random or non- systematic individual discretion in decision making is possible. This also enables the delegation of decisions downward in the hierarchy, both from strategic apex at the firm or concern level to the strategic apexes in each division and from the divisional strategic apexes to the middle managers in each division. In the divisional structure, the firm, organisation, or concern typically has separate and inde- pendent production lines, is situated at different sites and/or has subsidiaries in different countries. These separations allow for the creation of separation divisions. Although it is not that easy to discern from the above figure, Mintzberg (1983) viewed the middle management in the divisional structure are being more highly differentiated than in his other four organisational constellations. This is because he viewed the top management as the strategic apex of the entire firm, organisation or concern, whereas the middle management in this organisational form has two layers in his view: (a) the strategic apex at the level of the division and (b) the middle line of the division. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 16
Figure 8. The Divisional Structure
A divisionally structured firm can be strategically managed in several ways. Some firms and concerns perceive based on, e.g., competitive strategy assessments or knowledge management considerations that it is wise to allow room for divisions that do not necessarily make a profit, when seen from an isolated perspective, as it is still believed that their activities contribute to the overall health of the firm or concern. Other firms and concerns take a more stringent viewpoint on divisional profits and run each of their divisions as a profit centre (for further discussion of profit centres, see Milgrom & Roberts 1992, pp.225-230). Moreover, for internationally operating firms, the divisionally structured firm can take a number of possible constellations (Albaum et al. 2005, pp.626-631): 1. A separate international division may be created for the divisionally run firm that has most of its production and sales activities in one market, yet is also active on a number of export markets. This organisational constellation is termed by Albaum et al. (2005, p. 226) the international division structure. 2. For a international company that divides its production and sales activities organisationally among the separate products and/or services offered, the international organisational structure based on product (ibid. p. 227) is the term used for the organisational constellation where there are separate divisions for separate pro- ducts/product lines and/or service lines and where each product or service division has global responsibility for production and sales. Such organisation provides strong motivation to the division heads to ensure that their products meet the needs of customers on all markets; however, if the same customers demand products from more than one company or concern division, this organisation may not necessarily be perceived as optimal by the customer. 3. The opposite of the structure described under point 2 above is termed the international structure based on geographic area of customer groupings (ibid, p. 629). In this type of structure, the organisation occurs on the basis of geographical segmentation of markets or the segmentation of markets according to customer groups instead of according to products or service lines. Here, the pressure on the heads of individual product lines is less indirect and they are also less responsible for the global success of sales of their products, as this depends on the marketing and sales efforts undertaken in the divisions, which have been organised mainly on the basis of customer criteria. However, there may be grater possibilities to service customers that demand products from more than one product line through this type of organisation. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 17
The final organisational constellation mentioned in Mintzberg (1983) is the adhocracy, which is also termed by some the project-based organisation. The task or project-related activities in such an organisation or firm often resemble the activities of a bunch of enthusiasts putting together a one-off event related to their particular cultural or other free time interests, e.g. an opera festival, a World Music series of concerts or a competitive meeting of amateur sports enthusiasts: There is no entrenched hierarchy and few formalized rules; moreover, individual members of the organisation coordinate their activities through common views on the goal at hand, ad hoc decisions about who should best do what and adjustments on the parts of all parties, in the case that there are differences in views or an unwillingness to do certain activities. Here, once again, Lwendahls (2000, p.62) reference to the difficulties of control by herding cats comes into play. However, in contrast to the third organisational constellation, the professional bureaucracy, it makes less sense to speak of divisions between middle managers, the support staff and the operating core, as all persons are capable of servicing toward the common goal. Thus Mintzberg (1983) originally viewed the support staff as the dominating force in this constellation, indicating that the term had to be broadened to encompass all three types of personnel. Due to this, also the authority of the strategic apex and the technostructures experts may be more frequently called into question by various coalitions in the enlarged support staff. One possible conceptualisation of the adhocracy is depicted below in Figure 9. Figure 9. An example of an adhocracys organisational structure
Lwendahl (2000, pp.120-30) indicates that knowledge-based professional service firms that either focus on serving very unique client needs or truly expert problem solving that cannot be standardised are typical examples of adhocracies. Here, these characteristics render the use of standardised bureaucratic procedures of control relatively inapplicable and, to some extent, control by socialisation (see Edstrm & Galbraith 1977) may be used instead. Sociali- sation will be discussed in more depth in the next subsection of this text, which concerns organisational culture. However, already here it may be said that individuals that are socialised in relation to a certain social sphere think in many aspects in the same way about the issues at hand. Creating a community of employees that are socialised in a certain way MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 18
may be achieved by selective recruitment based on socialisation criteria, by on the job training and/or by a combination of both. However, while socialisation has a coordination advantage, in that it reduces the possible ways of thinking and acting such as to make daily coordination more effect and more effective, in relation to specific tasks and goals, it may also entail an increase in organisational blind spots that go unnoticed, due to its inherent concurrent reduction in the diversity of perspectives that scrutinize what is taking place in the organisation and make constructively critical suggestion of potential dangers, which may have not yet received sufficient attention. Aside from the five abovementioned organisational constellations from the work of Mintzberg (1983), other organisational experts speak of a sixth organisational constellation, namely the matrix organisation, which is characterised by organisation through the combination of the two firm or organisation competencies. Figure 10 below provides a maritime example of a matrix organisation, in that it depicts a possible matrix structure of a global shipping company that both operated containerships and tankers and is also specialised in the transport of hazardous cargos in transport between the world regions North America, Europe and Asia and within the Asian area. Figure 10. Matrix organisation for a fictive global shipping company
The fictive company in the above figure has chosen to organise its container shipping routes and hazardous cargo transport services both based on the regions served and based on the transport-type; in contrast, it has maintained a global structure for its tanker ship, in which no regional structure and thus also no the matrix structure are in place. Such a matrix organisation, as is in place for container shipping routes and hazardous cargo transports, may enable the shipping company to better meet the needs of its container shipping and hazardous cargo transport customers, if such customers typically only demand services one of the four possible geographic route delimitations. If this is not the case, however, it is questionable whether the matrix structure is advantageous to the fictive shipping company. On one hand, at best, the matrix structure may still balance the power between regional managers and transportation service type managers, enabling the company to come close to the best possible global optimum for its business activities. On the other hand, in many less ideal situation circumstances, employees perceive that the matrix structure is marked by unclear decision-making structures and the conflicts inherent in having two bosses. Finally, there are some that argue today that due to the complexities of international business, organisational hierarchies are undergoing a process of hybridization (Clegg, 2007) or transformation to heterarchies (Hedlund & Rolander, 1990). A heterarchy is characterised by less worrying about the hierarchical structures and their consistence; instead issues such as practical concerns, the ability of managers to network with a broad coalition of stakeholders concerning business and organisational development opportunities and flexi- bility in location, production, terms of services, costs, the ability to enter into ad hoc cooperation agreements etc. have become more important. Thus, power in a heterarchy or Transport-route based hierarchy Transport-type based hierarchy Container shipping routes Eur.-North Amer. Containers Eur.-Asia Containers Asia-N. Amer. Containers Asia Contain. Hazardous cargo transport services Eur.-North Amer. Hazar. C. Eur.-Asia Hazar. C. Asia-N. Amer. Hazar. C. Asia Haraz. C. Tanker shipping services Shipments between Europe and North America Shipments between Europe and Asia Shipments between North America and Asia Interasian Shipments Global Tankers MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 19
hybridized organisational structure may be more broadly dispersed and the principle of mu- tual accountability, instead of hierarchical accountability to ones superiors, may have been put in place. Moreover, in heterarchies, the headquarters may also not be located in one venue. Instead, to take the example of a major global operator of ports, its financial centre may be located in a major global financial metropolis such as London, while the global port operations development unit is located in or near a leading world port, e.g., Singapore. Before we turn to our structured assignments on ports and shipping companies organi- sational structures, we will mention that for the case of ports, in relation to the five organisational constellations of Mintzberg (1983), as explained in the previous subsection, Valentine & Gray (2002, pp.4-5) have specified that: only three of these structures seem to fit into the modern day port structure, viz. simple structure, machine bureaucracy and divisional. The adhocracy does not fit into the structure of any port because of its lack of rigidity. Ports require careful planning and development based upon what may be needed 10 or 20 years into the future. Without the rigidity of a formal structure each element in the chain would not know the whole picture, only the person at the top may see everything. Likewise the professional bureaucracy is not suitable in a port because of the routine and repetitive tasks that are commonplace within a ports day to day service. 2.1.1 Structured Assignment 1.4a Organisational structures in ports part 1 For this part of the assignment, you will need to access World Bank, 2008a. Port Reform Toolkit. Module 3 Alternative Port Management Structures and Ownership Models. 2 nd ed. Washington, DC USA: World Bank [online]. Available at: http://www.ppiaf.org/documents/toolkits/Portoolkit/Toolkit/pdf/modules/03_TOOLKIT_Module 3.pdf. Please read the following sections in this document before answering the questions: Section Page numbers in printed document 3. Port functions, services and administration models 73-76 3.1 Interaction with Port Cities 76-77 3.2 Role of a Port Authority 77-78 3.3 Role of Port Operators 78 3.4 Roles of a Transport Ministry 78-80 3.5 Port Functions 80-81 3.6 Port Administration Models 81-84 3.10 Value-Added Services 89-92
1. Discuss the extent to which (a) the port authority and (b) a transport ministry should use (i) centralisation mechanisms of control, (ii) hierarchical mechanisms of control and (ii) socialisation mechanisms of control in their dealings with the ports under their jurisdiction. (All of these three mechanisms are discussed in Section 2.1.) You may write up to 600 words in your answer. Beyond that, you may also include own full bibliographical references to other relevant literature you have read, if you so choose.
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 20
2. Discuss the possibilities for and limits of using (i) centralisation mechanisms of control, (ii) hierarchical mechanisms of control and (ii) socialisation mechanisms of control in (a) Public service ports, (b) tool ports and (c) landlord ports. You may write up to 700 words in your answer. Beyond that, you may also include own full bibliographical references to other relevant literature you have read, if you so choose.
3. Imagine that you are a human resource manager of a fictive major public service port that has planned and just received funding to add a number of value-added general logistics and logistics chain integration services. The port is currently organised as a machine bureaucracy. Discuss which human resource organisation factors would influence whe- ther you would recommend to the top management (a) that the port continue as a ma- chine bureaucracy after the addition of these extra services or (b) that the port be trans- formed to a divisional structure. You may write up to 500 words in your answer. Beyond that, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 2.1.2 Structured Assignment 1.4b Organisational structures in ports part 2 For this part of the assignment, you will need to access Vezzoso, G., 2000. The Restructur- ing of the Port of Genoa from the Compaquia Portuali to a port of enterprises, with is found on pp. 75-87 in Heseler, H., ed., 2000. Seaports in the Context of Globalization and Privatization. Bremen, Germany: University of Bremen Press [online]. Available at http://www.maritim.uni-bremen.de/ports/. 4. Based on the sections III. The reform of January 1994 and the further development and IV. Port Reform in Genoa, draw two pictures, (a) one that shows the organizational constellation put in place in the Port of Genoa between 1984 1989, including the relations and hierarchy among the mentioned key actors in the Port of Genoa and (b) one that shows the organizational constellation put in place in the Port of Genoa after 1989, including the relations and hierarchy among the mentioned key actors in this port.
5. Describe in your own words the strengths and weaknesses of the organisational structure of the Port of Genoa (a) between the years 1984-1989 and (b) after 1989. Here, you may write up to 800 words in your answer. Additionally, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 2.1.3 Structured Assignment 1.5 Organisation of shore-based ship management tasks For this assignment, first read Celik, M. and Er, I.D., 2008. Exploring the Key Aspects of Management Organizations in Shipping Business. Lex et Scientia, No. XV (Bucharest, Romania). Available at: http://lexetscientia.univnt.ro/ufiles/11.%20Turcia.pdf. Then answer these questions: 1. Please list the six key aspects in the five mentioned areas of management (executive management, personnel management, operational management, technical management, and safety management) which were perceived as being most significant issues in this research. Then list the six key aspects that were perceived as being the least significant.
2. Table 1-5 on pages 4-5 lists all key aspects for the five areas of management, in the viewpoint of Celik & Er (2008). Please rearrangement all key aspects so that you place MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 21
them where you believe they would be placed, in relation to the following five organisational structure parts of Mintzberg (1983): The operating core The strategic apex The middle line The technostructure The Support staff 2.1.4 Structured Assignment 1.6 Determining the organisation structure of various maritime companies Based on web-based organisation charts or firms descriptions, please provide an qualified answer to which of the organisation types discussed in Subsection 1.2.1 are found in each of the following firms: 1. Apeejay Shipping (see the organisation chart at: http://www.apeejayshipping.com/Organisation.html and fleet information at: http://www.apeejayshipping.com/Fleet.html) 2. Baird Publications (see description at: http://www.bairdmaritime.com/index.php?option=com_content&view=article&id=110&Ite mid=164) 3. Blue Water Shipping (see the organisation chart at: http://www.bws.dk/about/organisation/organisation-chart.aspx) 4. Commercial Naval Architects (see the company description at: http://www.navalarchitect.com.au/) 5. Companhia de Navegao Norsul (see the company description at: http://www.norsul.com/en/aempresa/ and http://www.norsul.com/en/thecompany/operationalarea.php) 6. Nigerian Ports Authority (see the organisation chart at: http://www.nigerianports.org/dynamicdata/uploads/OurAdminStructure.pdf and the description of statutory duties and functions at: http://www.nigerianports.org/dynamicdata/statutory.aspx?id=2) 7. Maritime & Port Authority of Singapore (see the organisation chart at: http://www.mpa.gov.sg/sites/global_navigation/about_mpa/org_chart_divisional_roles.pa ge)
2.2 Organisational culture Culture as a term used in organisational or sociological studies is marked by a Babel of definitions (Holden 2002, p.21). Many of the early works on organisational, national or ethnic groups culture were functionalist in nature, in that they assumed that the unit of analysis, i.e. the organisation, nation or ethnic group in question, was a collective whose culture had specific functions related to, e.g., the survival or thriving of the collective. This is also true of the definition that the ship organisation culture researcher Shea (2005, p.33, inspired by Kilman, Saxton & Serpa,1985 and Schein,1985) provides us with: Culture is an enduring set of values, beliefs, and assumptions that characterise organisations or societies, these include the shared philosophies, ideologies, expectations, attitudes and norms of their members. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 22
Inspired by functionalism and the rational viewpoint of organisations inherent in the work of, e.g., Weber (1992), there are also definitions of organisational culture that view it as a management tool, as in the rationalist definition of culture provided in Schultzs (1995:14) presentation of the rationalist paradigm: The [organisational ] culture is a tool for achievement of organisational goals. However, some persons criticize the above definitions for being too static and too deterministic. For example, the intercultural ship organisation culture researcher Knudsen (2003, p.13) has stated: Sometimes you get the impression that culture is a thing engraved in the brain of man which dictates norms, values and behaviour. If that were the case, you could calculate how for instance a Dane and a Filipino would act in a certain situation. The trouble is that two situations are never the same and even though they were, two Danes/Filipinos would hardly act in exactly the same way. One individual would probably not even act as he did 10 years earlier, maybe because our culture is in constant motion. Our cultural background even offers several possibilities of action, and few would act in the same way if they, for instance, were seated in front of their boss or their children. Cultural behaviour cannot be understood independently of the isolated situation and of the conditions in which an event takes place. Further, culture, especially the national culture, may only explain part of our behaviour. A Dane is neither completely like all other Danes nor is he completely unlike other people. On the one hand, his unique experiences and life story make him a human being unlike anybody else; on the other hand, he has wishes and needs which he shares with everyone else, for instance the wish to be respected, to have a meaningful job and for his family to have a certain standard of living, etc. Based on this criticism, many anthropologists, organisational analysts and communication experts have begun to view culture as a more nebulous concept, based on shared or only partially shared symbols and meanings, which are still somewhat inert, but fundamentally socially constructed and thus changeable over time (Holden 2002, p.56). If one takes this more interpretive perspective, fundamental questions for HR practitioners in relation to their activities within a firm or organisation are, e.g., What are the main meanings of the organisation to its members (or to various categories of members, e.g. employees in certain functions, levels or with certain educational qualifications) at this point in time?, How have they evolved? and possibly also How might we in HR seek to influence the organisational culture, i.e. these socially constructed meanings, so that they are optimal in relation to the organisations strategy, strengths and weaknesses?. As soon as one seeks to influence the culture, one can also say that one is aiming at control by socialisation (see Edstrm & Galbraith, 1977), as discussed in the previous subsection 2.1. We will therefore discuss socialisation processes a bit more in depth later in this section. However, returning to the interpretive perspective, in this perspective, on the one hand most often there is less of an a priori assumption that we necessarily will succeed in such interference in the social process of meaning construction within e.g. an organisation than is the case from the functionalist or rationalist perspectives, yet on the other, this type of socialisation is still commonly attempted by, e.g., top management or the HR department, in MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 23
efforts to ensure a feeling of unity within the organisation as well as to ensure understanding for and accept of the chosen business strategies and other policies of the firm. In contrast, from the rationalist and the functionalist perspective, the HR analyst may try to explain the social function of the culture and seek to measure the cultures strength, meaning the level of pressure that it exerts on members of the organisation (Schultz, 1995, p. 14), in attempts to prepare some socialisation measures for the organisations members. Some prefer such approaches, as they believe that the results of such analyses are easier to present to persons with natural sciences or engineering training, including to persons educated as navigators and marine engineers. From the functionalist perspective, cultures are also often diagnosed as being dysfunctional, if they are not coherent with the goals of the organisation. Cultures may be analysed at a large number of different levels, which only serves to render the term even more nebulous. To illustrate this, in Figure 11 below, we take the case of the most of the maritime activities of the Eitzen Group, whose headquarters are located in Norway. An organisational diagramme of the various units in the Eitzen Group is found at: http://www.eitzen-group.com/index.php?pk_menu=8. The headquarters of the groups holding company and company in which a large part of the maritime-related activities are located, namely Camillo Eitzen & Co. ASA, are situated in Oslo, Norway. Thus, it is the case that one can say that the cultures of these companies are embedded in the shipping industry culture of Norway, which is also embedded in Norwegian culture. These things are also the case for the subsidiaries of Camillo Eitzen & Co, namely Eitzen Maritime Services ASA and Eitzen Chemical ASA. However, these subsidiaries and their units operate globally, with many customers abroad and global sourcing of much of the required labour on board ship, some ship-related services and ship fuels. Thus these units are not only embedded in Norwegian culture and the shipping industry culture of Norway, they are also embedded into the global economic system and a perhaps a global shipping industry culture, if such a culture exists. Here it is to also be noted that Eitzen Chemical ASA is not only embedded into the shipping industry culture; as this unit serves customers from the chemical industry, it is necessarily also to some extend embedded in the chemical industry culture. Moreover the foreign subsidiaries of Eitzen Chemical ASA, which are situated in Denmark, France, Spain, Singapore and USA, are embedded in the national cultures of these countries. For the case of Eitzen Maritime Services, a subunit of this company, EMBS Insurance Brokers works with marine insurance, e.g. insurance for shipowners. Here, there may be a special marine insurance culture as well, which is inspired both by the specifics of the shipping industry but also by the characteristics of insurance. Beyond this, Camillo Eitzen & Co ASA has a wholly owned subsidiary in Denmark: Camillo Eitzen (Denmark) A/S. This subsidiary can be said to be embedded in the Danish maritime industry culture and in Denmarks national culture.
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 24
Figure 11. Some of the possible cultures of analysis in relation to the Eitzen Group
Finally, there may exist even further cultures within the various units of the Eitzen Group. For example, in EMS Ship Management, which is a wholly owned subsidiary of Eizen Maritime Services ASA, there may be different professional cultures. Ship or crew managers who were formerly ship officers may tend to socialise with other former ship officers more than they do with those colleagues of theirs who have university degrees in business administration or even maritime business administration. This leads us to the discussion of whether there is a clear hierarchy of cultures, as depicted in Figure 12 on the next page. Hierarchical modes of organisation and control, such as Mintzbergs (1983) machine bureaucracy or divisionally structured organisation, as discussed in Subsection .2.1, presuppose that there is a clear hierarchy. Therefore one might imagine that the professionals or persons with certain job-related tasks within a specific unit would maintain some of their own professional or job-related cultures, yet also in cases of discrepancies with the culture of the whole company unit would then defer to the company unit culture, as it dominates over the professional or job-related cultures on the workplace. In turn the company unit culture would defer to the company as a wholes culture, which in turn would defer to the Groups culture. Then, if the Group were operating in one specific industry, the Groups culture would confirm to the national industry culture, which then would be in accordance with the national culture. This would be a strict hierarchical ranking of various culture types. However, there are a number of organisational studies that show that such a hierarchical layering of cultures does not typically occur. Thus professionals may share their specific culture between company units, even if it is not entirely coherent with the company or group in questions culture. Moreover, in some instances, there are also strong nationally or globally operating units of professionals or other employee category which seek to maintain a MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 25
national or global culture for a profession or field of work. For example, in the UK, the Institute of Marine Engineering Science and Technology is a national professional association that seeks to maintain national standards for marine engineers (Parker, 2003, pp. 102-4), whereas the Nautical Institute is an originally British professional organisation for nautical officers, which has globalized (ibid., pp.104-6). In some fields of maritime work, e.g. dock working or work on board ship, there are a number of countries where labour union membership is relatively high. In such situations, the labour union may also play a socialising role for certain fields of work across firm boundaries. For the case of, e.g., dock workers, we would also expect this to be the case in countries which Sections 2.4.2 (about workplace safety committees) and 2.4.3 (about safety representatives chosen by the employees) of the ILO (2005) Code of practice on Safety and health in ports have been sought fully implemented, as the unions here may also play a role in coordinating employee positions on safety issues in port workplaces. Beyond this, in certain European countries, e.g. Sweden and Denmark, union representatives are also commonly consulted, as also are employers organisations, concerning the national governments education and further education policies for most personnel groups; this aspect is treated in more depth in Module 3s subsections 4 and 5. This consultation, combined with democratic organisational structures within the union(s), may also further a common culture among employees with specific educational qualifications and/or task functions.
Figure 12. Possible hierarchy of cultures
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 26
Finally, on the international level, there are today many companies that operate in multiple countries, and many of these wish to achieve a common firm culture, also across country boundaries. Here, it is possible that companies through their selection of persons with certain educational qualifications and certain personality characteristics as well as a certain con- tingent of employees with international experience may be able to achieve this goal to a certain extent (see Edstrm & Galbraith, 1997). Moreover, it is also possible that due to commonalities in the characteristics of various industries (e.g. the cyclic nature of demand for maritime transportation and the huge capital investments necessary to operate as a global containership operator), varying industry cultures also have cultural commonalities that at times partially or totally supersede national culture characteristics. Thus, based on the above, it is not possible to claim that various cultures are arranged in a hierarchical manner. This situation also speaks for the more cautious interpretive approach to culture which views culture at all possible levels and in all social relations as based on shared or only partially shared symbols and meanings, which are still somewhat inert, but fundamentally socially constructed and thus changeable over time (Holden 2002, p.56). However, in order to be able to work with the possibilities for manipulating with culture, it is important to understand dynamics related to such shared symbols and meanings. In order to understand these dynamics, we will first examine behaviour and thought processes at the level of the individual. At one level, the individual human being acts in various ways in certain situations and/or at certain specific points in time. Here, much of such behaviour can be studied by observation; moreover, behaviour patterns of interaction may also result in physical objects (e.g. organisational charts, strategy plans, products, service documentation, customer complaints form, written psychological tests), which also can be studied. However, behaviour does not necessarily remain the same over time, because behaviour is based on conscious reflection as well as unconscious decisions, impulses or reflex-like actions. Concerning thought or cognitive processes, some of these are present at the level of consciousness. Thus, these cannot be observed directly; however, an individual can be asked about his or her viewpoints or perceptions on specific themes or events and about the frameworks that he or she uses when making choices or assessments. If he or she agreed to this, we then have the creation of further artifacts, which are textual in nature. Here, by asking we can expect to get some insight into the individuals conscious thinking about a certain theme, provided that he or she is honest in seeking to give us a true and complete view of own perceptions. However, this honesty cannot necessarily be assumed beforehand for it occurs very often that persons seek primarily to answer strategically, e.g. by choosing to avoid speaking about taboo or other embassing subjects or to optimize their power based on in relation to the potential audience who might read or hear their statements. These types of selective answering may also occur if the identity of respondents is kept secret (Alasuutari, 1995). Finally, individual behaviour and cognition is also influenced by subconscious elements. However, these cannot be accessed directly by observing behaviour or asking questions; also studies of brainwave patterns do not give us precise information about the content of the subconscious processes going on in the individual. Based on the above explanation, Figure 13 on the next page depicts the relationship between the individuals behaviour, cognition and subconscious.
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 27
Figure 13. The relationship between the individuals behaviour, cognition and subconscious
Most human beings interact with other human beings, both verbally and in actions, on a frequent basis; i.e. daily contact to a number of other humans is the normal patterns for all except for a few hermits and persons placed in isolation, e.g. in prisons . The behaviour and viewpoints of other human beings input into our own behaviour, in that we can and do to a certain extent emulate behaviours and thought that are perceived by significant others, persons of authority or majorities in the social groups we are members of as being correct or amiable and also refrain to a certain extent from behaviours and thoughts that are, con- versely perceived as being incorrect or wrong. This is an example of the ongoing process of socialisation that we all participate in. By participating in this socialisation process, we are also participating in the reproduction and modification of the socially constructed patterns of symbols and meanings. In order to understand how one might seek to describe the culture in a particular organisa- tional or societal unit of analysis, we can make use of discourse analysis social linguistic framework (see, e.g., Philips & Hardy, 2002, pp.22-3). This analytical framework is depicted below, in Figure 14. Figure 14. An Analytical Framework for Discourse Analysis
In relation to Figure 14, a text can be one or more closely related written documents or notes/tapes from oral conversation. Moreover, a discourse is typically defined as (a) a group MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 28
of texts that are related to each other and (b) the processes related to these texts genesis, spreading, and reception (ibid., p.3). This means that a discourse also encompasses a vocabulary of words, symbols, pictures, and other communicative tools which can be used or referred to in a meaningful way, as well as various implicit cognitive frameworks of understanding with regard to, e.g., what may or should be regarded as positive or fitting (Gee 1999, p. 37,78). According to Kress (1995, p.122), individual texts are viewed as artifacts in the following way in discourse analysis: Texts are the sites of the emergence of complexes of social meanings, produced in the particular history of the situation of production, that record in partial ways the histories of both the participants in the production of the text and of the institutions that are invoked or brought into play, indeed a partial history of the language and the social system, a partiality due to the structuring of relations of power of the participants. Finally discourse analysts are concerned with the understanding of a third, more broad aspect, namely the societal context in focus. Achieving understanding of the societal context is important because discourses are created in interactions among individuals and various social and/or business-related groups in complex societal and cultural structures (Phillips & Hardy 2002, p.4); however, also here, the societal context can lie at different levels, as was illustrated in the discussion of Figures 11 and 12. Based on the above, if HR or other organisational managers were to determine relevant aspects of the units culture from the interpretive perspective, they would seek to identify characteristics from qualitative and quantitative analyses of discourses as collections of written and oral text and then also related the discourse to underlying relatively static or inert structure characteristics that the chosen unit of analysis is subjected to. In contrast, if a more functionalist or even rationalist approach was taken, it is likely that there were first be some a priori rationalising about the function of the culture in question and how it has arisen and can be changed (Schein 1985, p.49). Then quantitative measurement tools, e.g. surveys or tests, may be used to analyse the culture in question or even secondary data may be drawn upon to make inferences about the culture. For the case of firm units located in different countries, Geert Hofstedes five cultural dimensions (see: http://www.geert- hofstede.com/) have been used by many persons, including maritime HR researchers in both the ports and shipping sectors (see, e.g., Barnett et al., 2006; Ircha, 2006; Theotokas et al., 2006) to make such cultural inferences. Here, however, once again, the critical remarks about the possiblity of over-determination and stereotyping made by the ship organisation culture researcher Knudsen (2003, p.13) should also be taken into consideration: Sometimes you get the impression that culture is a thing engraved in the brain of man which dictates norms, values and behaviour. If that were the case, you could calculate how for instance a Dane and a Filipino would act in a certain situation. The trouble is that two situations are never the same and even though they were, two Danes/Filipinos would hardly act in exactly the same way. One individual would probably not even act as he did 10 years earlier, maybe because our culture is in constant motion. Our cultural background even offers several possibilities of action, and few would act in the same way if they, for instance, were seated in front of their boss or their children. Cultural behaviour cannot be understood independently of the isolated situation and of the conditions in which an event takes place. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 29
2.2.1 Structured Assignment 1.7 Dealing with complacency For this structured assignment, you must first read the following article: Bielc, T., 2008. Complacency as Element of Maritime Accidents. Split, Croatia: Paper of the Faculty of Maritime Studies, University of Split. Available at: http://www.he- alert.org/documents/published/he00665.pdf. After reading this article, please answer the following questions: 1. From Section 1 of this paper, one can deduce that complacency with regard to potentially dangerous circumstances may be a major problem in the organisational cultures of many firms in the shipping industry. Summarize briefly the contextual factors that Bielic (2008) mentions as possible contributors to complacency. You may write up to 500 words in your answer. Beyond that, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 2. In Section 3, Bielc (2008) argues that the matrix structure may be used to reduce complacency. Please discuss whether you agree with his arguments about the matrix structure or whether you disagree. You may write up to 600 words in your answer. Beyond that, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 2.2.2 Structured Assignment 1.8 Is the Individual or the Organisation the Cause of the Misery? For this structured assignment, you must read pp. 131-43 of the following article (you may stop on p. 143 when you reach 4.2 Toward the Development of a Maritime Assessment Framework): Barnett, M. L., 2005. Searching for the Root Causes of Maritime Casualties Individual Competence or Organisational Culture? WMU Journal of Maritime Affairs, 4(2), pp. 131-45. Available at: http://www.solent.ac.uk/mhfr/resources/human%20error.pdf. 1. On p. 136, Barnett (2005) states that the chart of the sources of human error shown in Figure 2 emphasises that violations raise the notion that they are attitudinal in nature and that the operational or organisational culture is often the root cause of violations. Elaborate on this claim by explicating from which boxes of Figure 2 Barnett (2005) draws this conclusion. Here, you may write up to 500 words.
2. In Section 4.1, Barnett (2005) discusses situational awareness and crew resource management. Based on what he writes, please give your assessment of his implicit position in relation to the following three possible views on human resource management from (Nielsen 2000, pp. 37-9), as discussed in Section 1.1.
A strategic planning perspective. A negotiated social relations perspective. A social power structure perspective. In other words, do you believe that he is making these recommendations from one of the three above mentioned perspectives or perhaps some combination of them? Please state your qualified guess and justify your answer.
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 30
3. THE HR FUNCTION IN SITUATIONS OF MULTI-ORGANISATION COOPERATION IN DELIVERING MARITIME TRANSPORTATION SERVICES In this shipping and ports sector, it is very common that multiple firms or organisations are involved in solving tasks and delivering services to customers (Haugstetter & Grewal, 2004). This is, e.g., the case in the so-called tool and landlord ports, which were discussed in Structured Assignment 1.4, which came immediately after Subsection 2.1 on organisational structure. Thus it is not surprising that that Chlomoudis & Lampridis (2006, p. 3) write: In order to achieve quality port products and/or services a management approach is required interrelating all those staeholders (internally & externally) which contribute (pilots, terminal operators, transport companies, intermediaries and service providers, warehousing firms etc) to port operations. Moreover, in all instances of multimodal transport services, this is also the case. To illustrate this through a roll-on, roll-off transportation example, now read p. 11 (starting with the heading 2.3 The role of transportation) p. 18 (stopping at the heading 2.4.3. Basic design of ro-ro-vessels) of Garberg, B., 2001. Value-adding Services in Roro-Shipping. Present Demand and Future Possibilities. Gothenburg, Sweden: Master Thesis in Logistics and Transport Management, University of Gothenburg. Available at: http://gupea.ub.gu.se/dspace/bitstream/2077/2444/1/Garberg_2001_23_inlaga.pdf. First after you have finished this external reading should you continue on in this text. In such cases, it is common that not only do the individual firms or organisations and possibly also specific organisational units within these have strategies and operative instructions for serving customers optimally; there is also very often a certain degree of common quality standards and rules for customer and collegial contact among the different business actors in the port or supply chain. Where this is the case, the individual firm only has direct control over its own employees actions through hierarchical mechanisms, yet its success is influenced by the actions of own and other firms or organisations actors. This implies that the cooperation mechanisms among the firms and organisations involved in the delivery have to also be sought optimized. Here, commonly, the human resources department is not directly involved in these negotiations, yet must implement some of the common policies and may be invited or otherwise able to provide suggestions or inputs to the firm actors conducting the negotiations. The person(s) involved in the negotiations with the other firms or organisation involved in the joint service delivery can be termed boundary spanners in English (Adams 1976; Aldrich & Herker 1977), as they cross the boundaries of their own organisation to enter into agreements with other firms. In the German-language business administration literature, there is a related term, the relationship promoter (in German: Beziehungspromotor, see, e.g., Gemnden and Walter 1995). According to Adams (1976, p.1176), there are three defining charateristics of individual(s) in boundary spanning positions: 1. the occupant of such a position [may be] more distant, psychologically, organizationally, and other physically, from other members of his organization than they are from each other, and he is closer to the external environment and to the agents of outside organizations 2. he represents his organization to the external environment MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 31
3. he is his organizations agent of influence over the external environment With regard to the interpretive perspective on culture, it also follows from the following citations from the work of Aldrich and Herker (1977, p. 218-219) that the boundary spanners will be especially involved in the social processes of constructing symbols and meanings, both within their own organisation and at the interface of multiple organisations cooperating to create jointly delivered transportation services: The process by which information filters through boundary positions into the organization must be examined. Boundary roles serve a dual function in information transmittal, acting as both filters and facilitators. [] boundary role personnel selectively act on relevant information, filtering information prior to communicating it. [] The expertise of boundary role occupants in summarizing and interpreting information may be as important to organizational success as expertise in determining who gets what information, depending upon the uncertainty in the information processed. Information to be communicated often does not consist of simple verifiable facts. If the conditions beyond the boundary are complexly interrelated and cannot be easily quantified, the boundary role incumbents may engage in uncertainty absorption, - drawing inferences from perceived facts and passing on only the inferences. Based on the above, the HR management process in an individual firm or organisation involved in the joint delivery of maritime transportation services with other service providers is elucidated in Figure 15 on the next page. Here, the point of departure is an adaptation of the Harvard Model (Beer et al, 1984) from Subsection 1.3. In Figure 15, the activities which occur within the organisation or firm in questions own organisational boundaries have been marked with blue, whereas the activities that occur in the external environment, including in the maritime service co-producing firms, are marked with purple. Finally, the boundary spanning activities or the presentation of the results of boundary spanning agreements among multiple organisations or firms are marked with green. Here it is seen that there also may be inter-organisational assessment of the various service delivering firms HR policy outcomes and long-term consequences and that these assessments may also result in revisions of cooperation agreements and attempts to create a common service culture. In relation to the cooperation agreements and the assessments conducted by multiple firms or organisations, these may also be marked by power struggles among the organisations, which are carried out by the boundary spanners as the representatives of the organisations. Here, Aldridge and Herker (1977, pp.219-20) note that such external representation by boundary spanners: can be viewed in terms of an organizations response to environmental influence. Envi- ronmental constraints and contingencies can be adapted to in at least three ways: (a) by internal structural differentiation to match the pattern of the relevant environment, which requires information about environmental characteristics; (b) by gaining power over relevant elements of the environments, manipulating it to conform to the organizations needs; and (c)
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 32
Figure 15. The HR Management Process in an Individual Organisation, in the Case of Multiple Organisation involvement in Service Co-Production (based on an expansion and adaptation of the Harvard Model of Beer et al., 1984, p. 16)
a compromise position, the modal pattern of use of boundary personnel in normal boundary spanning roles. Included under the external representation function are all boundary roles that involve resource acquisition and disposal, political legitimacy and hegemony, and a residual category of social legitimacy and organizational image. However, in certain instances, the power struggle does not occur only among the various organisations, it may also occur internally in the firm which the boundary spanner represents. For, as noted by Adams (1978, p.1178): The BRP who bargains with an external agency on behalf of his organization must not only attempt to reach an agreement with outsiders, but must also obtain agreement from his own group as to what constitutes an acceptable agreement with the external organizations. The BRP is at the crunode of a dynamic, dual conflict in which the outcomes of conflict resolutions attempts (however tentative) in one conflict become inputs to the second conflict, the outcomes of which then become new inputs to the first conflict, and so on. Thus, in sum, one can say that the management of human resources in the situation of multiple organisation inputs to an at least partially jointly delivered service becomes much more complex, as organisation-external actors also to some extent may be involved in the creation of inputs to HRM policy choices and in the assessment of the outcomes that the HR department achieves. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 33
i. Structured Assignment 1.9 HR Management in Port Firms in Nigeria Since 2003, the ports of Nigeria have been undergoing a restructuring process, which is detailed on the following web page of the Nigerian Port Authority under the heading Statutory Duties and Functions: http://www.nigerianports.org/dynamicdata/statutory.aspx?id=2. Please read this information first. You are to imagine that you work for a private stevedoring firm at the Port of Lagos (see: http://www.nigerianports.org/AboutUsLagosPort.aspx?id=3), who cooperates with other private sector actors, e.g. the operators of storage facilities, in the port. Nigerian port service quality surveys have been delivered to date for the Port of Lagos and another Nigerian port by a research team at the Federal University of Technology, Owerri, Nigeria. Please read the following academic article about the 2002 study: Ugboma, C., Ibe, C. & Ogwude, I.C., 2004. Service quality measurements in ports of a developing economy: Nigerian ports survey. Managing Service Quality, 14(6), pp. 487-95, available at: http://www.emeraldinsight.com/Insight/ViewContentServlet;jsessionid=077B57C6BBA4DE42 43A0C617433B7178?Filename=Published/EmeraldFullTextArticle/Articles/1080140605.html. 1. Based on Section 3.6 Port Administration Models, pp. 81-84 of World Bank, 2008a. Port Reform Toolkit. Module 3 Alternative Port Management Structures and Ownership Models. 2 nd ed. Available at: http://www.ppiaf.org/documents/toolkits/Portoolkit/Toolkit/pdf/modules/03_TOOLKIT_Mod ule3.pdf, which you read as a part of your work in solving structured assignment 1.4 as well as the web information about the Nigerian Port Authoritys restructuring process, please (a) determine which port administration model was used in Nigerian ports prior to 2003 and (b) determine which port administration model has been introduced in 2003 and later. Under the heading Managerial Implications in the article by Ugboma et al. (2004), it is mentioned that the Lagos port is experiencing competitive pressure from the neighbouring port of Cotonou, which is located in Benin. Based on this competition, the constellation of private firms in the Lagos port have, together with the Nigerian Port Authority, been working to improve the scores on the service quality perceptions, to minimize the gap between the customers expectations of port service quality and the customers perceptions of the service they have actually received. The strategic goal that the boundary spanners in the inter-firm cooperation group have set is the minimization of the 4 largest gaps by 80% and the other gaps by 60% in the Lagos port. Based on this strategic goal, imagine that you are a HR department employee in a stevedoring firm operating in the Lagos port. 2. List the attributes mentioned in Table V may in your opinion be addressed through your HR departments HRM policy choices. Of the gaps that you list, please also indicate which have to be minimised by 80% and which by 60%. 3. For each gap you listed under point 2, please suggest a policy mix you might use in addressing it. Here, you should seek to draw inspiration from the Harvard models (Beer et al., 1984) four policy issues, as discussed in Subsection 1.3: 1. Managing human resources, 2. Managing reward systems, 3. Managing command and employee input systems and 4. Optimizing work systems. Moreover, for each gap you listed, you should also discuss the relevance of using bureaucratic procedures of control and/or socialisation procedures of control, as discussed in Sub-sections 2.1 and 2.2. Here, you MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 34
may write up to 700 words in your answer. Beyond that, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 4. Your employees work in cooperation with other employees from other firms and organisations such as the firms in the Lagos port that offer storage and waste collection and treatment facilities as well as the Nigerian Port Authority, who inspects safety, security and incidents of maritime accidents or pollution in the entire port area. Discuss whether it would be a good idea to request that your firms employees collect information about potential service quality problems in the other firms and organisations in the port with the aim of the HR department providing this information to your firms boundary spanners who will assess the various firms and organisations quality performance and make future agreements about further quality improvements. Here, you may write up to 500 words in your answer. Beyond that, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. ii. Structured Assignment 1. 10 Use of multi-agent information systems for solving allocation problems among multiple actors in ports First, you must read the following article: Rebollo, M., Julian, V., Carrascosa, C. & Botti, V., 2000. A MAS Approach for Port Container Terminal Management. Valencia, Spain: Lecture notes in Computer Science from the Polytechnical University of Valencia. Available at: http://users.dsic.upv.es/~vinglada/download/MAS_workshop_final.pdf. If you find this article difficult to understand, you may also read: Botti, V.J., 2004. Multi-Agent System Technology in a Port Container Terminal Automation. ERCIM News, No. 56, January 2004, pp. 37-8, available at: http://users.dsic.upv.es/grupos/ia/sma/publications/articulos/Art%edculo.pdf. Now you must imagine that the above technology is to be implemented in a landlord port, in which a multinational stevedoring company operates three of the four port container terminals. This multinational stevedoring company is responsible for the complete operational cycle at these terminals, but other companies are also involved (e.g. to deal with specific cargo handling tasks, including the running of some warehouses at the terminal). 2 large shipping companies offer global liner services to multiple destinations from these terminals, and there are also multiple regional feeder line services. The short-sea shipping feeder market fluctuates somewhat, however, in that there have been multiple changes in the routes served and the frequencies of services as well as changes in the operating companies. Moreover, some transport that has gone by feeder ship previously now arrives by truck and vice versa. The fourth terminal is currently not leased, due to a current economic slump, but the Port Authority has the policy of maintaining and updating its infrastructure, so that it can be leased sometime in the future. The multinational terminal operator is pushing for the implementation of the multi-agent system architecture for its three terminals, some of which share the same facilities, which are operated by sub-suppliers (e.g. specialised warehouses). The Port Authority is positive about this, on the condition that the system can be optimized globally, i.e. for all four terminals in the port, because this authority hopes to be successful in leasing the fourth terminal. Moreover, the Port Authority, the occupational safety and health authority and some labour unions who represent employees in the port will monitor the implementation and post- implementation phases to ensure that accidents, injuries and occupational health risks do not increase during and after implementation of the multi-agent system architecture. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 35
1. First, discuss various factors which might lead to a failed implementation of the system among the various businesses and authorities in the port itself. Here, you may write up to 700 words in your answer. Beyond that, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 2. Second, imagine that you work in the HR department of the multinational terminal operator. You have been assigned the task of being involved in a team that will motivate the other, smaller firms operating in the port to work together with your firm to ensure that accidents, injuries and occupational health risks do not increase when the imple- mentation starts, during the implementation and after the implementation. Discuss in general terms (a) how you may address this issue with these other smaller firms operation in the port as the process of implementation proceeds, and (b) the possibilities and limits of controlling and providing feedback to these other firms that you company has as the leader of the complete operational cycle in the three leased terminals. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 36
4. INTERNATIONAL VARIATIONS IN MARITIME HR a. Introduction As discussed in Subsection 2.2, there are a large number of works that seek to describe variations in national cultures, both at a general level and at an industry-specific level, but some of these works have been criticized by some scientists for being stereotypically gener- alising. This discussion will probably continue for the near and medium-term future. However, in the following, we will present some empirical results from maritime industry studies that show that when we analyse at an aggregate level, aside from individual and situation-specific variations, there are national and/or regional variations in maritime HR practice, both on board ships, in ports and in the underlying nautical education programs that produce ship officers and ratings with qualifications. b. International variations in the organisation of work on board ship For the shipping industry, Walton (1987) is the largest internationally comparative empirical and theoretical study of management on board ships ever undertaken. It spans the time period 1966 to 1983, focusing on practices on ships owned or operated by shipowners from 8 different countries: Denmark, Germany, Japan, Netherlands, Norway, Sweden, the United Kingdom and the United States. Based on the aggregate of results for the studies in all of the above countries, Walton (ibid, p.63) developed an underlying descriptive model of how, during this time period, new technology innovations drove efforts to organise of work on board ships in new days in the expectancy of achieving crewing cost savings. This historical model is depicted in Figure 16 on the next page. Here it must be noted that the methods used for achieving cost savings changed in the subsequent period, with ship owners or operators from high wage cost countries in, e.g., North America, Japan or Western Europe (and here, to the greatest extent in Northwestern Europe) turning to flagging out to lower labour cost countries to a much greater extent, and to an extent that lead to the average wage for ratings in 1999 being only roughly of the wage paid in 1992 (Bloor, Thomas & Lane 2000, p.331). This subsequent development was partially facilitated by the liberalisation of ship registers in some European countries such as, e.g., the Netherlands and by the creation of second registers in other European countries such as, e.g., Denmark, France, Germany, and Norway (see DeSombre, 2006, Jakobsen et al., 2004, Llacr, 2003). These issues will be covered in much more detail in Module 3 of this course, for one of the core themes of Module 3 is wage and benefit creation on maritime labour markets. However, aside from the overall model of Figure 16, the various countries were also grouped by Walton (ibid.) as either high innovators, moderate innovators or low innovators based their position in relation to a number of organisational innovations that took place in parts of the global shipping industry; additionally, data was collected about a number of other characteristics about the national shipping industries in each of these countries. Some of this data is presented in Table 1 on the next page. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 37
Figure 16 Waltons (1987, p. 63) Model of Ship Work Reorganisation 1960s 1983
Table 1. Variations in national shipping industries from 1966-1983 (Walton 1987, p. 66, 152-154, 156)
Netherlands Norway Japan UK Sweden (W) Germany Denmark USA 1. Ratings' role flexibility Extensive practice Extensive practice Extensive practice Limited practice Limited practice Limited practice No practice No practice 2. Officers' role flexibility Significant trend Experiments only Significant trend None Non None None None 3. Employment continuity Universal by law Extensive practice Practice of lifetime employment Extensive practice Universal by law Universal by law Limited practice Limited practice 4. Crew/vessel assignment continuity Limited practice Limited practice Limited practice Very limited practice Very limited practice Very limited practice Very limited practice Very limited practice 5. Ratings involved in participative work planning Limited practice Limited practice Limited practice None, with few exceptions None, one exception None, one exception No formal practice No formal practice 6. Management integration of shipboard officers Extensive practice Extensive practice None Extensive practice Limited practice None Limited practice Limited practice 7. Social integration Limited practice Extensive practice Extensive practice Very limited practice Extensive practice Limited practice Extensive practice Very limited practice 8. % of own na- tionals employed on ship in 1968 65% 75% Data not available Data not available 64% 86% 87% 100% 9. % of own na- tionals employed on ship in 1973 54% 80% 100% 79% 66% 77% 80% 100% 10. % of own na- tionals employed on ship in 1984 67% 80% 100% 87% 85% 78% 87% 100% 11. % Change in total employment on board ship, 1968-73 -42% -28% Data not available -25% -19% -21% -8% -54% 12. % change in total employment on board ship, 1973-83 5% -19% -10% -59% -17% -34% -21% 0% 13. Ranking, pay rates for ratings, 1983 6 4 1 7 3 4 6 2 14. 1983 Ranking by crew costs (pay rates & crew size) 6 5 2 6 3 4 6 1 Org.innovations & other rankings High Innovators Moderate Innovators Low Innovators MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 38
In Table 1, the first seven factors are the innovation factors on which the individual countries shipping industries were assessed. Here, factor 6, management integration of shipboard officers, refers to the trend during this period toward shipping officers receiving more delegated management responsibilities from shore superiors, which was a break with the trend in the preceding period. Moreover, factor 7, social integration, refers to the removal of many elements of the distinction between officers and ratings, e.g. the separation of lunch- rooms and lounges for free time activities and the upgrading of the facilities that ratings used. In several of the countries there were also some individual variations among shipowners; some of these even went against the general picture depicted in Table 1. For example, for the case of Denmark, the country as a whole is depicted as a low innovator, based on the aggregate of the results for all of the shipping companies. However, the Danish shipping company DFDS is also listed as one of the most pioneering companies with regard to organ- isational innovations (ibid., pp. 68,88). Factors 8 10 concern changes in the composition of the workforce in terms of the relative percentage of own nationals versus foreigners for various years in the time period, whereas factors 11 and 12 deal with reductions in the total number of seafarers employed on ships owned or operated by shipowners in each country. Finally, factors 13 and 14 are comparative cost-related factors. Beyond these factors, Walton (ibid.) also compares these shipping industry-specific trends to general societal developments in each country, e.g. the extent and nature of efforts to democratise the workplace and minimise differences among different employee categories in the period, levels of unemployment and developments in the relationship between labour unions and employers or employers associations. This occurs as more general developments in the business sector in the country in question also set limits and provide opportunities for industry-specific developments. Although the data in Table 1 is now outdated, the wisdom of gathering such comparative data, in order to e.g. (a) understand the HR practices of ones competitors in relation to ones own practices or (b) the relative cost and efficiency advantages and disadvantages of certain labour markets for seafaring officers and ratings, in order to make decisions about which labour markets one wishes to draw on in ones employment of seafarers, cannot be underestimated. We will return to point (b) in Module 3, which as previously mentioned concerns wage and benefit creation on maritime labour markets. However, for now, we move on to discuss international differences in organisation in ports. c. International variations in the organisation of work in ports In the ports sector, competition is more on a regional level than on a global level. This should have been evident from Structured Assignment 1.9, which followed Subsection 1.3 of this module, in that this structured assignment contained remarks about the competition between the Port of Lagos, Nigeria and the neighbouring port of Cotonou, Benin. However, the geographic features of a region also shape the competition between ports. Thus, the Port of Rotterdam competes with the Port of Hamburg as a global shipping hubs concerning transport to continental Europe. However, e.g., the Scandinavian peninsula, which consists of Norway and Sweden, are not commonly served, at least not directly by the continental ports of Rotterdam and Hamburg. Instead, global shipments commonly come into the largest ports in this region, e.g. Gothenburg, or, alternatively, goods from other continents are transferred to short-sea shipping ships bound for one of these three countries from a MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 39
continental European hub port such as Rotterdam or Hamburg. Thus, here it is relevant to look at regional competition. Generally, since the mid-1980s, ports around the world have been increasingly focusing on increasing their efficiency, through the implementation of capital intensive-technologies, which have brought about workforce reduction, re-education of the workers who have not been made redundant by this development, new methods of the organisation of work, including in some cases also participation of workers in workplace decision and service quality-related benefits for either individuals or teams as a part of the wage package (World Bank, 2008b, p.314). However, the substitution of traditional labour intensive dock work by capital intensive technologies has not progressed at the same speed everywhere, due to, e.g., different ownership and organisation structures in ports, as elucidated in Structured Assignment 1.4., which followed Subsection 2.1s treatment of organisational structures. Moreover, variances in competitive forces and in stakeholder viewpoints on the reorgani- sation of work in ports affect the extent to which reorganisation is attempted and, if so, how it is effectuated. Concerning this point, Palmer (1999, p. 9) stated the following: The most apparent and well known aspect of change has been the reduction of the numbers of people employed in ports, changes in their conditions of employ- ment and rising productivity. This reduction in numbers has been most pro- nounced in the older industrial nations, where it has proved easier to transfer the filling of containers inland, but it is evident in ports in less developed countries too. In some ports, in some countries, this has been accompanied by reduced trade union influence, but this has not been the case everywhere. Hiring practices have also changed. Britains ending of the Dock Labour Scheme, which had regularised casual employment, proved an extreme example of deregulation. A mix of casual and permanent employment has tended to replace earlier pre- dominantly casual or preferential labour systems. The assessment of port efficiency is a relatively complex task, and a plethora of studies have focused on this issue, using varying methods for measuring port efficiency (see Gonzles & Trujillo, 2008), meaning that there is no one dominant tool or model that can be considered optimally suited for all analysis needs. Thus, we urge HR practitioners in the ports industry to consider the fit between various models and own organisational characteristics, including the stakeholder and situational factors mentioned in connection with Sub-section 1.3s treatment of the Harvard Model of Human Resource Management (Beer et al., 1984). Here, the positions and cognitive understandings of powerful internal and external stakeholders as well as the situation factors related to the existing organisational structure and culture, the existing technologies in use in the port and their position on the technology life-cycle, the efficiency of the cooperation among multiple firms, as also discussed in Structured Assignment 1.9. and the degree of stability of the environment are especially important to consider. However, despite the need for a situation-specific assessment of which tool or model is best suited, one overall remark will also be made: In a recent study, a Delphi panel of 8 Turkish port experts also indicated panel agreement with the following statements concerning (a) the resources inputted into the port to ensure operations: One of the most important sources for the port is qualified human resources and (b) the ex post measurement of the success of port management: Port managements success is measured through the quality of the human resources (Cetin & Cerit, 2009, pp.12-3). These results suggest the paramount importance of optimal, yet situation specific HR management in ensuring efficient port operations. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 40
As a number of ports have gone from being primarily public sector service ports to be either tool, landlord or fully privatised ports (see World Bank 2008a, pp.82-3), the developments that Palmer (ibid.) describes in the citation above, have occurred, either concurrently or subsequently. However, these developments have also occurred to widely varying extents in various localities, with some port venues experiencing also no change, for social institutions do not adjust automatically or instantaneously to market pressuresbe they local, national, or global in origin (Turnbull & Wass 2007, p.582). Instead, the nature and extent of port reforms and restructuring efforts varies from venue to venue, due to underlying variations in the stakeholder and situational factors, including (i) the political structures and the strength of various political forces (the government, courts, labour unions, individual employers, employers organisations, various media outlets, etc.), (ii) other struc- tural variables (e.g. the number of competing ports and of these, the number subject to differ- ing constellations of political forces) and (iii) more cognitive variables (e.g. predominating political and market ideologies and ideologies about regulation, workers rights, etc.). In the mid-1990s, Turnbull & Wass (2007) gathered data in order to study changes in the status of labour union influence on dock work in a total 38 different countries. The data was gathered via questionnaires, which were filled out and returned by union officials from a total of 46 trade unions in these 38 countries. In the work of Turnbull & Wass (ibid), the extent of restructuring in the countrys major ports was also classified as being either major or minor based on the union respondents answers to simple factual questions about the liberalization of competition (i.e., the removal of restrictions on access to the port services market), the privatization of port services (i.e., the sale of public port companies or the leas- ing of public port facilities to private operators), the deregulation of employment (e.g., the reform or abolition of statutory dock labour schemes or union hiring halls), and the introduction of more flexible work practices (including functional, numerical, and temporal flexibility) (ibid., p.590). This resulted in the classification matrix depicted in Table 2 below: Table 2 Classification of the major ports in a country according to the extent of port restructuring and changes in the level of union influence (based on Figure 2 in Turnbull & Wass 2007, p. 594)
Table 2 illustrates, as postulated above, that ports in various countries have attempted port structuring to varying extents. Moreover, the direction of change in the influence of unions has also varied from country to county. Here, however, it is interesting to note that in cases in which unions reported major restructuring, there were many more reported instances of decreased union influence, whereas the figures are almost the same for the case of minor port restructuring. Beyond this, a higher percentage of the union cases from the highest income countries noted increased union influence than for the middle and low income union cases covered in the article. In relation to these details, human resource professionals Decreased union influence (26 union cases) Increased union influence (20 union cases) Major restructuring (23 union cases) 15 union cases in Brazil, Chile, France, Hong Kong, Jamaica, New Zealand (2 unions), Nigeria, South Africa, Trinidad (2 unions), Ukraine (2 unions), UK (2 unions). 8 union cases in Australia, Belgium (2 unions), Germany, Ireland, Italy, the Netherlands, Portugal Minor restructuring (23 union cases) 11 union cases in Antigua, Bermuda, Croatia, Guyana, India (2 unions), Papua New Guinea, Singapore, St. Lucia, St. Vincent, Turkey 12 union cases in Cyprus, Denmark, Finland (2 unions), Japan, Latvia, Malta, South Korea, Spain, Sweden, USA (2 unions) MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 41
responsible for the global coordination policies in multinational port operating company might find it useful to study possible underlying explanations for these patterns, if their company intended to attempt port restructuring in a number of countries, in order to develop, wherever pertinent, common restructuring frameworks and ways of dealing with labour unions in the restructuring process. To this end, variances in labour union organisation in general and in docker labour organisation will be discussed further in Module 3 of this course. i. Structured Assignment 1.11 National Variations between Latin American Ports For this assignment, please first read the stated excerpt of the following article: pp. 207 217 of Snchez, R.J., Hoffmann, J., Micco, A., Pizzolitto, G.V., Sgut M. & Wilmsmeier, G., 2003. Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs. Maritime Economics & Logistics, 5(2), pp. 199218, starting with the head- ing Measuring Port Efficiency on p. 207. Available at: http://www.palgrave- journals.com/mel/journal/v5/n2/full/9100073a.html. 1. Explain in your own words what is depicted in Table 5: Partial correlation matrix on p. 208 of this article. Here you may write up to 400 words. 2. In relation to Table 8: Port efficiency factors on p. 210, discuss possible reasons why the General turnaround is too closely correlated with the bureaucratic turnaround. Here you may write up to 400 words. 3. Summarize in your own words whether, and if so, which factors from Table 8 have been inputted in Tables 9 and 11 on pp. 212 & 214, and what you can read or deduce about whether thee possibly inputted factors are statistically significant. Here you may write up to 600 words. 4. Now, imagine that you are a port HR manager at the Port of Montevideo, Uruguary at the beginning of the Millennium. According to Hoffmann (2001, p. 231), this port belongs to a group of ports in South American that operated based on private stevedoring, but public sector investments, tariffs, and bureaucracies. Moreover, Hoffmann (ibid.) that these ports have passed through some initial stages of port reforms, which can be summarised as having `tool' rather than `service' common user ports [... They] have modernised labour regimes and increased private sector participation in stevedoring and warehousing. As the port HR manager, you are not responsible for the decision about the extent of port reform at your port, as this is a political decision, and it is unknown at the current time which further reforms will be enacted. However, there is general concerns that the costs of transport of goods/from to Uruguay is too high, compared to the situation in several other Latin American countries, as also illustrated in Table 3 below. Based on the information in the article as well as in this question formulation, discuss in general terms in whether, and if so, in which areas further investments in port infrastructure might help in improving port efficiency. Then, based on the information in the article as well as the material in this module up to this point, discuss in general terms whether, and if so, in which areas investments in changing organisational routines might help in improving port efficiency. You may use up to 600 words in answering this question. You may also use secondary sources in answering this question. If you choose to do so, you must include full bibliographical information about the sources used, which will not be counted in the allotted 600 words. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 42
Table 3. Average transport costs to various Latin American countries as a percentage of the value of imports in Intra-Latin American trade, c.i.f., 2000 (Hoffmann, 2002)
ii. Structured Assignment 1.12 Example of International Situational Factors For this assignment, please read: Keceli, Y., Choi, H.R. & Park, N.K., 2007. Critical Success Factors of Information Systems in Kumport and Implications for Other Turkish Ports. Pp. 378- 83 in Proceedings of the 2007 WSEAS International Conference on Computer Engineering and Applications. Gold Coast, Australia, January 17-19, 2007. Available at: http://atlas.cc.itu.edu.tr/~keceli/yayinlar_files/KUMPORT_Conference.pdf. Assignment question: Similar to structured assignment 1.10, which immediately preceded Section 1.4, the above article deals with the implementation of a software for port operations optimisation. Take relevant information from the entire article concerning human and organisation resource management in the covered implementation of the new port information systems, as depicted in the articles Table 1. The application programs used in Kumport (p. 379 in the article) and place this information in following boxes of the so-called Harvard model of Human Resource Management (Beer et al. 1984, p. 16, as depicted in Figure 3 in this module text): A. Stakeholders B. Situational factors C. C1 HRM and here also C2 organisational resource policy choices D. D1 HR and her also D2 general efficiency - outcomes In your answer, please also specify factors which are specific to the Turkish cultural context. In your answer, you may write up to 900 words. Beyond this, you may also include own full bibliographical references to other relevant literature you have read, if you so choose.
Transport destination country: Average trans- port costs as % of imports Rank, included countries Argentina 9.1 % 5 Brazil 6.4 % 1 Chile 9.1 % 5 Colombia 7.5 % 3 Ecuador 9.7 % 8 Mexico 6.7 % 2 Paraguay 9.3 % 7 Peru 7.9 % 4 Uruguay 13.1 % 9 MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 43
iii. Structured Assignment 1.13 Developing the Capabilities of the HR Function to Train Port Authority or Port Firm Employees in Handling Interactions with External Stakeholders in Varying National Contexts Part 1. First, you must read the following article in its entirety: Haugstetter, H. & Grewal, D. 2004. Innovative Techniques and Port Management: Implications for Port Organisations. IAMU Journal, 4(1), pp. 35-42 [online]. Available for online reading at: http://iamu- demo.annex.jp/Portals/5/book/J05_1.html#/4. Then, choose a major port in your country of residence, for which information about its organisation and customer and other stakeholder base is accessible to you. If there is not such information available about a port in your country of residence, choose a major port in an English-speaking country for which you can find such information. 1. For your port of choice, first determine whether it is a service port, a landlord port or some intermediate organisational constellation, e.g. the tool port, as previously discussed in Sub-section 1.1.4. (Hint: Here, you may also want to consult the literature that you used for Structure Assigment 1.4, namely World Bank 2008a, again.). Write your answer down. 2. If your chosen port is a service port, you must analyse this question 2 from the perspective of the port operating unit. If your port is organised in another organisational constellation, you may either analyse question 2 from the viewpoint of the port authority or from the viewpoint of the largest stevedoring firm operating in the port. In this latter case, please first specify which viewpoint you choose before answering the question. Taking your point of departure in Figure 1 Heterarchy of port users, showing web of relationships on p. 5 in the above mentioned article, draw your own figure of the heterarchy of port stakeholders from the perspective of the chosen port and port actor. Here, as you are dealing with a specific port, please state the specific name of each relevant actor, e.g. the name of the relevant local government or the name of the relevant employees networks or organisation. You may also change the number of boxes as necessary, e.g. if you are dealing with a port which is a member of a powerful ports association and/or employers association, these may also be included. 3. After your diagram has been completed, describe which actors are most important in relation to: o Ensuring that financial resources will be accessible when future investments are needed o Assisting you in short-term competition in your markets, such that your organisations revenue and, if relevant, profit goals are met. o Cooperating with you to ensure that the entire process of service delivery at your port is delivered to the customers satisfaction o Ensuring that your organisation has a pool of suited applicants to fulfil jobs o Facilitation your efforts to improve the qualifications of your organisations current employees when deemed necessarily or wise o Assisting you in your long-term strategic considerations MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 44
Here, you may write up to 600 words. In addition to your answer, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 4. List various ways and media through which your organisation may communicate to your heterarchy of stakeholders. After this, discuss briefly whether certain media are especially suited to certain types of stakeholders. Here, you may also write up to 600 words. In additional to your answer, you may also include own full bibliographical references to other relevant literature you have read, if you so choose. 5. Finally, discuss legal limits on your communication and cooperation with these stakeholders. Here, please provide at least three specific examples (but preferably more) of legislation that sets limits to what you may say and how you may cooperate in relation to one or more stakeholder. Also here, you may write up to 600 words, and you may choose to include own full bibliographical references to other relevant literature you have read, in addition to your answer. Part 2. In part 2, you must repeat this process of answers questions 1 - 5 for another port in another country. If you have chosen a port in your country of residence, you may here choose a port in any English-speaking country for which information about its organisation and customer and other stakeholder base is accessible to you. If you have already written a port a port in an English-speaking country, you may choose another port in second English-speaking for which the above-mentioned criteria are also fulfilled. Moreover, if your instructor speaks other languages than English, he or she may also allow you to search for ports for which information is available in the other languages that he or she speaks. Part 3. After you have completed parts 1 and 2, write a short statement that compares the similarities and differences between the results of the analyses of Parts 1 and 2. The first purpose of the above assignment has been to prepare you as a potential future HR employee in working with assessing and if necessary improving staff qualifications with regard to external stakeholder relations. Moreover, the second purpose of the above assignment was to illustrate that there can be small or large differences in stakeholder net- works from port to port and from one national or regional competitive context to another. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 45
5. HR COORDINATION ACROSS COUNTRIES a. The Greatest Common Denominator Approach to International HR Coordination The previous section of this module illustrated that it is highly pertinent for HR managers to understand local conditions well, when working HR in a specific venue or developing a common overall HR-development plan framework to be used and adapted in multiple locations. In the latter instance, the so-called greatest common denominator approach is suggested used. For the case of the implementation of new operational measures for implementing a new strategy in an international company that operates ports in multiple countries, this greatest common denominator approach would consists of the following steps: 1. In many ports, the following is to be studied: How the global strategic goals of the organisation may be implemented and/or facilitated through the HR department policies, policy changes or other structural changes. For each port venue studied, due consideration must be given to local political forces, structural variables and cognitive variables, which are also described. For port venues subject to very similar constellations of political forces, structural variables, and cognitive variables, only one venue needs to be studied. 2. After the study of the specific venues, the proposed implementation and facilitation measures for each venue are compared across venues. Here, in cases of differences, the underlying reasons for the differences (i.e., differences in political forces, structural variables, and cognitive variables) are also studied. The aim of this comparison is to condense implementation and facilitation strategies, such as to have a more unitary plan across venues of operation, wherever possible. However, this may not be feasible in all countries, hence the name The greatest common denominator approach. In cases where this is not possible, local solutions will have to be found, still keeping the strategic goals of the company in mind. However, here, it may also be that the strategic goals cannot be met in certain venues due to e.g. political, structural or cognitive constraints. In this case, the HR department or personnel working with the HR implementation or facilitation of the strategies must also consider whether it will pass information on about this assessment on its part to top management and/or the relevant leaders at the particular venue. Following the steps above, the greatest common denominator approach will result in some global policies, standards and recommendations for human resource management. In turn, if these are implemented in a flexible manner, the complex implementation and subsequent adaptation process will be formed by the factors depicted in Figure 17 on the next page. In Figure 17, it is seen that global-industry specific variables as well as firm-specific variables of the types A (industry stakeholders) and B (industry situational factors) in relation to the Harvard Model of Human Resource Management (Beer at al., 1984, as previously discussed in Subsection 1.3 of this module) influence the firms HR policies and guidelines at the global level concerning this models variables C (policy choices), D (outcome monitoring) and E (long-term monitoring and feedback on consequences of HR policy).
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 46
Figure 17: A Model of Personnel Management in a Multi-National Company or Organisation (extension of the Harvard Model of Human Resource Management, Beer et al. 1984, p. 16, see Figure 3 in this module)
The factors that input into each national subsidiary or units HR policies are then both (a) the industry-specific, firm-specific and country-specific variables concerning stakeholder types A and B and (b) the global HR policies of the concern. Here, in each country, own HR Policy choices may be made, to accommodate for national specifics, if the global firm policies allow for this. However, at the same time, the global firm HR policies seek to ensure as much uni- formity as possible, for purposes such as: to enable or facilitate short- and long-term out- come comparisons to be made across countries, to maintain a global corporate culture, to facilitate communications between units located in difference countries, to ensure as uniform a service level to global corporate customers across national boundaries as possible, etc. The above inputs to the implementation of HR policy at the national level are depicted by the solid lines and arrows in Figure 17. In turn, the dotted lines and areas show the (most often more indirect) feedback loops. Here, at the left of far left of the figure, it is seen that also national stakeholders and national situational factors can influence the supranational preferences of the firms and the industrys stakeholders as well as supranational situational factors. In her book Flagging Standards. Globalization and Environmental, Safety and Labor Regulations at Sea, DeSombre (2006) explains how the shipping industry is partially marked by self-regulation and by a plethora of politically or commercially active stakeholders at the national and international industry level. These include national labour unions, which are coordinated internationally through the International Transport Workers Federation (or ITF), national shipowners associations, which are coordinated internationally through the International Chamber of Shipping (ICS) and the International Shipping Federation (ISF) as well as classification societies, vetting companies, etc. The work of most of these actors at the national level is very often met by international coordination. For example, the professional organization for navigators, the Nautical Institute, has many national chapters, MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 47
many of which input to its international activities (Parker, 2004) in the areas of, e.g., contributing to the study of the effect of the human element in shipping accidents and near miss incidents, which in turn inputs to the general debate about this issue in the national and international maritime press as well as to the policy making procedure in a number of international organizations, including also the International Maritime Organisation (IMO). The dotted blue arrow in the middle of the figure indicates that in firms of all sizes, feedback from and the actions of the HR department can influence firm stakeholders and situational factors; moreover, especially in larger firms, such feedback and/or actions may also influence the entire industry to some extent. Finally, the dotted blue arrows on the far right side of the figure show that, of course, the national units policy choices and implementation as well as their short-term monitoring of immediate outcomes and long-term monitoring of the more far- reaching consequences also should input to the global HR policy of the firm or organisation. b. Remarks and Illustrations from Practice in the World of Transportation i. Example from European units of a communications and transport provider Liberman and Torbirn (2000) studied strategic and operative management practices in 8 subsidiaries of a company active in the communications and transport industries, which also had UK roots. All studied subsidiaries were located in countries which are at least partly located on the European continent: the United Kingdom, Germany, Sweden, Spain, France, Poland, Russia and Turkey. Concerning operative management tactics, although there were individual variations in each country, in general, the eight studied countries could be divided into three clusters, based on the most predominant patterns, as is depicted in Figure 18 below. Figure 18. Predominant features in operational management tactics in 8 subsidiaries of a multinational company active in the communications and transport industries (Liberman & Torbirn, 2000, pp. 42, 44-6)
From Figure 18, it is seen that the management ideals behind operative management tactics as well as the control mechanisms used were rather similar in one cluster of countries MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 48
(France, Poland, Russia and Turkey), yet differed from a second cluster of countries (Germany and Sweden) on one hand and from the UK situation on the other. The studied company also had a number of formal communication tools, which were intended to be used in all countries, as is depicted in the blue box Figure 19. These were fully implemented and followed in 5 countries: Poland, Russia, Spain, Turkey and UK. However, in the first of these three countries, the implementation was not well accepted by the employees, whose main stances on this are depicted in Figure 19. In contrast, in France, Germany, and Sweden, the tools were not fully implemented. Figure 19. Implementation of formal communication tools in the eight subsidiary countries (Liberman & Torbirn, 2000, pp. 43-7)
Figure 19 illustrates one of the fundamental dilemmas inherent in international human re- source management coordination, as also outlined in the previous subsection 5.1 of this module: On one hand, some managers will seek to implement headquarters policies about HR issues such as formal feedback and communication fully, as they believe that this will provide the most similar information structure across all subsidiaries. However, in doing so, in some places, this project may not succeed due to its being contrary to locally accepted norms and practices. On the other hand, other managers may take more liberties in adapting the HR policies suggested or dictated at the corporate level, as they also wish not to offend their local employees by taking into account these local employees pre-understandings, ways of doing things and preferences. However, in this instance, one may gain more local acceptance of HR policies, yet not generate information comparable to or in the format that the headquarter function would like to see. Appraisal techniques and performance-based pay are also areas in which discourses and practices also vary substantially from country to country. Thus, it is not surprising that Liberman and Torbirns (2000, pp. 47-8) study also found substantial deviations from the concern-policy concerning these issues, as is illustrated in Figure 20 below. Here, five countries implemented the internationally proposed individually based appraisal techniques MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 49
Figure 20. Appraisal and performance-based pay in the eight subsidiary countries (Liberman & Torbirn, 2000, pp. 47-8)
and performance-based pay schemes: Poland, Russia, Spain, Turkey and the UK. In contrast, there were various deviations in France, Germany and Sweden. In France and Germany, individually based performance-based pay was not put in place for the non-managerial staff. In France, qualitative evaluations were instead performed, whereas in the German subsidiary, the employees union representatives forbid all individual assessments of performance. Also in Sweden, individual assessment and performance- based pay was not used for non-managers; here, however, group assessments were allowed, and also in some situations quantified, with group bonuses being paid. Wage and benefits policies will be discussed further in module three, whereas appraisal will be covered in more depth in module five. However, in relation to the above, it is once again pertinent to mention that the local adaptations probably helped ensure acceptance by the local staff, yet at the same time may have posed some problems for the companys headquarters with regard to, e.g. comparing the efficiency and performance of individual not- yet managerial staff in various subsidiaries for the purpose of promotion of qualified staff applicants to managerial positions. ii. Remarks concerning international HR coordination in shipping Concerning shore-based administrative employees in shipping industry companies, the discussion of the previous subsection about the problems of forcing international standard- isation versus allowing for some national differences in implementation practices in the land- based multinational transportation company is fundamentally the same. However, concerning sea-based work on board ships, there are a number of special factors that will be discussed here. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 50
Firstly, we note that today the crew on board a merchant shipping vessel is more likely than not to be composed of persons of more than one nationality (see, e.g., Ellis & Sampson, 2008), which would point in the direction of less standardisation of practices. However, at the end of subsection 5.1, remarks were made about the shipping industry being characterised by a multitude of politically or commercially active stakeholders at the national and inter- national industry level, including national labour unions, which are coordinated internationally through the International Transport Workers Federation (or ITF), national ship owners associations, which are coordinated internationally through the International Chamber of Shipping (ICS) and the International Shipping Federation (ISF) as well as classification socie- ties, vetting companies, etc. The extensive level of international dialogue among these stake- holders may serve to lessen the number of differences in the ways of organising work on board ships, both between nations and between ship owners and operators. Moreover, there are a large number of international conventions, regulations or recommendations from the International Maritime Organisation (IMO) and the International Labour Organisation (ILO) concerning areas such as maritime education, safety management, maritime security and workplace conditions that serve to lessen differences between countries, even though these are also most commonly implemented in differing ways between countries, as concerns the passages in these conventions that leave scope open for differing interpretations. However, this being said, there are certainly still be some country-specific and firm-specific differences. For the case of country-specific differences, some management style and legal characteristics of the main home country of the company that owns or operates the ships may play a role in relation to the companys chosen HR policy. For example, one shipping company may initiate an ambitious program to monitor and benchmark various shipmasters performance regarding fuel efficiency, whereas another company may not necessarily follow suit, just as various companies may offer various rewards for compliance to certain safety policies or, conversely, for reporting and following-up on near misses. Finally, there is still a segment of substandard shipping employers (see, e.g., Couper et al, 1999), despite the fact that international regulation and efforts among many of the above-mentioned stakeholders also seek to raise the bottom with regard to bad management practices and abuse of employees (DeSombre, 2006). Moreover, the individual shipping company also can choose among a number of potential flag states, which have varying requirements concerning e.g. minimum crew regulations (Winchester et al., 2006), which maritime educational certificates they accept (Winchester, 2005) and occupational safety and health issues (Alderton & Winchester, 2001), due to the above-mentioned scope left often for differing national interpretations of passages in international conventions. At the same time, however, an increasing number of areas which are flag state areas of responsibility are also checked by the countries whose ports are frequented in the procedure of port state control (Molenaar, 2007). Moreover, port state control standards, checks and service quality have been sought standardised through regional memoranda of understanding (Li & Zheng, 2008). This double control through Port State control as well as the regional Port State Control memoranda of understanding serves to minimize national differences in standards among countries, but still there are some differences between flag states and regional port state control regimes. As concerns maritime education and training, as the quality of maritime education and train- ing varies substantially, despite the passing of the IMOs STCW Convention (Sampson, 2004). Also shipowners set varying standards (Sampson, 2003), and an individual shipowner may even vary the standards between various types of ships and/or cargos, as the financial MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 51
risks in the cases of accidents and cargo spillage are largest in the cases of the transport of oil, hazardous and noxious substances and other dangerous goods. Sometimes when the latter is attempted, also external ship management companies are employed to run certain of the ships (see Klikauer & Morris, 2002; Chapter 2 of Panayides, 2001). At the same time, there are examples of shipowners, shipowners associations and ship management associations investing in specific seafarer training initiatives abroad (for investments in the Philippines, see, e.g., Amante, 2007, p. 50 for the case of Japanese shipowners; Netherlands Shipping Training Centre, 2010; Norwegian Training Center Manila, 2010), which may serve to make it easy to harmonise HR policies. Here, the issue of training and education will be treated in more depth in Module 5; thus, the issue at hand here is only factors which either facilitate or impede the international cooperation of a shipping companys HR practices on board its ships in relation to the greatest common denominator approach. In the instance of the use of external ship management, it is common that shipping companies that use ship management for a part of or all of their fleets seek to maintain the right to chose the flags in which the ships under ship management are flagged as well as the nationalities of crew members and various other crew selection criteria (Mitroussi, 2004). However, there are large segments of the ship management market that are composed of ship management companies offering completely or relatively standardised services, with only a few possibilities for adaptation to the shipowners demands (see Chapter 4 of Panayides, 2001); this seems to decrease the shipowners possibilities for using the greatest common denominator approach. However, there is also the tendency that shipowners of a certain nationality seem to prefer to use ship managers of the same nationality (ibid.), which may also increase the possibility of the use of the greatest common denominator approach, if there are many commonalities in the way that the shipowner and the ship management company of the same national origin handle HR issues. Finally, in relation to the greatest common denominator approach, according to Wu and Win- chester (2005), there are some regional differences in the use of various crew nationalities. Asian shipowners, and here especially Taiwanese, Singaporean and Japanese shipowners, seem to use Chinese seafarers much more frequently than Western European shipowners. Conversely, Eastern European (including Russian) seafarers are used much more frequently by Western European shipowners than by Japanese shipowners. Here, it is possible that the Asian shipowners are either more familiar with the Chinese seafarers and/or have an easier time learning about their strengths and weaknesses and vice versa, and that, similarly, the Western European shipowners also either are more familiar with the Eastern European sea- farers and/or have an easier time learning about their strengths and weaknesses and vice versa. If this is true, this selection pattern may facilitate the use of the greatest common denominator approach in the shipping companies global coordination of their HR policy with regard to HR on board ships. iii. Structured Assignment 1.14 Global Coordination of HR in Internationally Operating Stevedoring Companies Part 1. For the first part of this assignment, please first read: Heseler, H., 2000. New Strategies of Port Enterprises and their Effects on the Structures in the Seaports, pp. 9-26 in Heseler, Heiner, Ed. Seaports in the Context of Globalization and Privatization. Bremen, Germany: University of Bremen [online]. Available at: http://www.maritim.uni- bremen.de/ports/. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 52
1. Based on the strategies and strategic considerations in this article, first identify key strategic considerations that the so-called worldwide operating global stevedore companies focusing on container terminal operation must prioritise. Here, you may write up to 400 words in your answer. 2. Based on your answer to question 1 above, identify global possible HR policies and priorities that the HR departments of these worldwide operating global stevedore companies focusing on container terminal operation might choose to focus on implementing and/or monitoring, to support the strategic priorities you identified in question one. Here, you may write up to 600 words in your answer. You may also include own full bibliographical references to other relevant literature you have read, if you so choose, in addition to the up to 600 words of your answer. The first part of this structured assignment must be completed before you go on to the second part. Part 2. In the second part of the assignment, we will focus on a historical situation in the Australian ports. Here, you must imagine that you work for the HR department of P & O Ports Australian subsidiary in the year 1998. You must therefore first read the following pages of Productivity Commission, 1998. International Benchmarking of the Australian Waterfront. Canberra, Australia: Research Report, AusInfo, available at: http://www.pc.gov.au/research/benchmark/wtfrnt: Section 2.2. Industry participants (pp. 22-27) All text under the heading Labour Productivity in Chapter 6 Stevedoring Containers (pp. 129-132) Chapter 10 Port-land interface (pp. 171-198) 3. Imagine you have just received the global P & O Ports Australian strategic priorities, which are identical to your answer to question 1 above, as well as the global HR policies and priorities, which are identical to your answer to question 2 above. You must now formulate local HR policies and priorities, in which you seek to maintain the greatest common denominator with the global HR policies and priorities, yet where necessary also make adaptations to specific Australian circumstances, as explained in the pages of International Benchmarking of the Australian Waterfront you have just read. Therefore you must write up the local Australian HR policies and priorities, and explain the reasons for the similarities and/or differences from the global HR policies and priorities you provided in your answer to 2. In answering this question, you may write up to 900 words in your answer. You may also include own full bibliographical references to other relevant literature you have read, if you so choose, in addition to the up to 900 words of your answer. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 53
6. ETHICAL ISSUES IN MARITIME HUMAN RESOURCE MANAGEMENT AND CORPORATE SOCIAL RESPONSIBILITY POLICIES IN THE MARITIME SECTOR One unique characteristic of us human beings as a species is our unique ability to think abstractly and communicate about their thoughts to other members of their species. Based on this ability, in all nations and human cultures in the world, there are agreements and dis- agreements about what is moral, good and/or right behaviour and thought as well as a general understanding among most members of the population in question of a need to seek to further such behaviour and thought. Ethics as a subject deals with arguments and viewpoints about what is moral, good and/or right. In utilitarian ethics, the main focus is on ensuring that the goal or results strived for, be they a certain profit target or a certain level of output improvement, are moral, good and/or right. However, there are other ethical stances that focus on both (a) the goals or results and (b) the means used to achieve these results. For example, the so-called Golden rule, which some scholars argue exists in multiple religions and worldly philosophies (see, e.g. Wikipedia 2010d), states that one must generally treat other humans as one himself or herself expects or has a right to expect to be treated. Thus it focuses upon ones own perceptions of ones own rights, which also forms the basis for others rights which one also may not breech. In contrast, the German Enlightenment philosopher Immanuel Kants well-known categorical imperative is an attempt to make logical, universal rules and maxims about the rights of all human beings, to ensure that there are universal ethical principles concerning both (a) goals and results and (b) means. As much human behaviour is not premeditated or subject to rigorous logical analysis before it occurs, some ethicists argue that ethics cannot be anchored in reason, but instead must be anchored in other things, e.g. active religious practice and/or bodily experience. Moreover, there are religious and philosophical ontologies that claim on one hand that the worth of human beings is absolute and unquestionable, and on the other that human logical reasoning may not necessarily be sufficient to guarantee that the absolute and unques- tionable worth of human beings is never violated. These standpoints on ethics will, however, not be treated further here, as most discussion about ethical issues in businesses and other organisations takes its point of departure in debates of (a) the ethics of means and (b) the ethics of goals or results. In order to introduce yourself to debates about ethics in businesses and other organisations with employees, please read the entire Wikipedia (2010a) English-language e-Encyclopedia article about business ethics at: http://en.wikipedia.org/wiki/Business_ethics. After you have read it, please continue on to read about corporate social responsibility below. In recent years, a variety of actors in the world of international maritime transport have begun to promote corporate social responsibility (henceforth: CSR) as a way of ensuring that maritime transportation companies and organisations (1) seek to adhere to ethical principles concerning both (a) ethics of means and (b) the ethics of goals/results as well as (2) seek thereby to safeguard or improve their own reputation and/or the reputation of the maritime transport industry itself. This tendency to focus on CSR is, however, not unique to the shipping or ports industry; it has been found in many other sectors as well. According to Khoury, Rostami & Turnbull (1999), CSR is the overall relationship of the corporation with all of its stakeholders. These include customers, employees, communities, owners/investors, government, suppliers and competitors. Through effective CSR practices, organizations will: MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 54
achieve a balance between economic, environmental and social imperatives; address stakeholders expectations, demands, and influences; sustain shareholder value. Important promoters of CSR in the maritime transport sector include the Secretary General of the Inter-national Maritime Organisation, Mr Efthimios E. Mitropoulos, the European Sea Ports Organisation, and Det norske Veritas, the Norwegian ship classification and safety consultancy multinational (see: Det norske Veritas 2004). Leading shipping firms and harbours that have decided to develop CSR policies include the worlds largest ship management group V.Ships, the Taiwan-based worldwide ocean carrier Evergreen Marine Corporation, the Hong Kong-based port operation enterprise Hutchinson Whampoa Limited, the Port of Rotterdam, Norwegian Wilh. Wilhelmsen Shipping Company (see Hargett & Williams, 2009) and the Danish worldwide ocean carrier group A.P. Mller Mrsk (see Kampf, 2007). Here, however, it should be noted that this list of examples is not exhaustive, nor should it be regarded as a recommendation or positive publicity for the mentioned firms and organisations. It follows from the above definition that a company that enters into a CSR agreement makes a promise to its stakeholders and society at large that it will adhere to ethical standards in areas of societal concern such as working conditions or environmental policy. Regarding the relationship between corporate social responsibility policies and trust, there are at least 6 effects of implemented CSR policies may help a company or organisation to safeguard or improve its own reputation among its stakeholders and in society at large. These are depicted in Figure 21; here it is to be noted that all effects on the company or organisations reputation are based on stakeholders perceptions. Figure 21. Possible effects of implemented CSR policies which may help a company or organisation safeguard or improve its reputation
Firstly, one or more stakeholders may perceive from a companys CSR policy that they share the same values as the company and may on this view the company as being of good repute. Secondly, the presentation of the companys CSR policy may be viewed by the stakeholder as proof of the companys constructive activities to maximize its value to both MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 55
itself and society; this in turn may lead a particular stakeholder to believe that he or she has a greater chance of also creating value in cooperation with the company, which in turn may lead to a positive effect on this stakeholders perception of reputation. Thirdly, the CSR policy may seem well-balanced, well-considered, and fair to a stakeholder, which in turn may cause him or her to assume that also he or she will be treated in a fair way, should he or she at some time have a disagreement or be in conflict with the company. This, in turn, would either maintain or improve the companys reputation in the eyes of this stakeholder. Conversely, if a stakeholder believes that a company acts in a constructive and fair way towards its stakeholders and balances its interests with those of others, a stakeholder may believe that there is less risk of opportunism in relation to his or her own relationship to the company and the companys relationship to various third parties. The stakeholder will in this circumstance value the decreased risk of opportunism in the own relationship as being in his or her own interest. Additionally, the stakeholder may value the lack of opportunism toward third parties positively, due to ethical preferences, a preference for avoiding dealings with potentially embarrassing partners and/or his or her own extended interest in safeguarding his/her own reputation. The issue of extended interest comes into play, e.g., in the case where the stakeholder also has close relations to other stakeholders and might together with these other stakeholders enter into joint transactions with the company or organisation in question. Any or a combination of these effects may cause an increase in the stakeholders perception of the reputation of the company or organisation. Finally, at a more general level, the information in the companys CSR policy is information about the companys behaviour. Having a greater amount of information may increase the stakeholders perception of the predictability of the behaviour of the company. If the stakeholder has a psychological preference for predictable behaviour, this may also increase the stakeholders perception of the company or organisations reputation. The above six effects have been described in relation to a companys CSR policy general terms. However, it is not given beforehand that CSR policies and initiatives always will be perceived as positive by stakeholders. Therefore, Figure 22 on the next page also depicts some possible negative effects of CSR policies. The first potentially negative effect is the attitude that CSR is just empty rhetoric that cannot really be trusted. We expect to find this attitude among some representatives of all studied stakeholder groups. One of the reasons for this viewpoint is the observation that a number of companies and organisations whose managers have been accused of major crimes (e.g. the Enron Corporation in the early 2000s) had well-polished and publicised CSR policies, which they also pointed to, in efforts to prove their legitimacy, right up to the days of the revelation of the crimes (see, e.g., Petrache, 2009). The second potentially negative effect is the stakeholder opinion that CSR is a dangerous substitute for regulation and/or union negotiations. Concerning this effect, the dangerous substitute for regulation, this criticism has been raised at a general level for all industries in, e.g., Reich (2007). However, with regard to the shipping and port industries, this criticism will possibly also be voiced especially by those stakeholders that are critical of the open registers MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 56
Figure 22. Possible negative effects of implemented CSR policies
system, which is also called the flags of convenience system by its critics, and of certain aspects of port liberalisation efforts (see, e.g., Alderton & Winchester, 2001; Heseler, 2000; Llcer, 2003; Palmer, 1999). In relation to this point, a ship owner that puts its ships in the more heavily criticized flag of convenience registers or a shipbroker that charters ships from such registers, whilst at the same time seeking to promote CSR, may be perceived by at least some of its stakeholders as sending non-credible mixed signals. In relation to the opinion CSR is a dangerous substitute for union negotiations, we expect that this viewpoint may be present among some employees and some unions (see Justice, 2003). Conversely, another sub-segment of stakeholders, which we expect will mainly be composed of customers and investors (as well as possibly some employees who are not labour unionists), may be sceptical of CSR because they adhere to the opinion first stated by Milton Friedman (1970) that the responsibility of firms is to maximize profits within the given legal framework provided by the political system. Put in other terms, these actors do not share the values concerning the CSR policy-making process. Instead, they may view the process as needless bureaucracy or muddying of the proper focus of the company, which in turn may lead to decreased trust. More generally, stakeholders who are sceptical of CSR policy and have a psychological preference for predictable behaviour may be inclined to believe that the unwanted CSR policy reduces the predictability of the counterparts behaviour. This, in turn, may decrease the perceived reputation of the company in the eyes of these specific stakeholders. The last two trust-reducing variables concern firm and market pricing levels. Therefore they are assumed to mainly concern customers, although employees, governments and labour unions may also monitor these effects as well, e.g. to ensure job security and what is perceived to a a reasonable price level. We hypothesize that the some customers may fear that suppliers with CSR policy will need to charge higher prices and/or that suppliers seek to create higher market prices on the long term by using CSR to increase the barriers to industry entry. Moreover, if these suppliers also only subcontract or cooperate with ethical subcontractors/business partners, these subcontractors/business partners will also need to charge higher prices, which may lead to a spill-over price increase effect. The fear of higher MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 57
prices may lead to more monitoring of the supplier and thus also to decreases in reputation for those stakeholders for whom guaranteeing the lowest prices is a substantial part of the judgment of a firms reputation. Based on the above, the picture of whether it is a good idea to invest in CSR policies and their implementation and whether this necessarily will result on improved business results for the firm or organisation that chooses this path is muddied somewhat. Some would argue that CSR policies are unnecessary, as all firms and organisations should seek to follow ethical rules as the de facto option, yet as many firms and organisations do not necessarily do so all the time, voluntary CSR initiatives are also not likely to make a real difference in firm or organisational ethics. Conversely, other actors may be so one-sidedly concerned about prices and/or company profits that they would prefer to avoid or minimize the companys and entire industries investments in CSR. However, there are other actors that believe that CSR can be used, as one instrument among many, to demonstrate to both internal and external stakeholders that a certain company or organisation takes its obligation to fulfil legal rules very seriously and otherwise also seeks contribute positively to society beyond the minimum legal requirements, thus both reinforcing the company or organisations reputation and also reinforcing societal efforts to maintain ethical standards. Beyond this somewhat muddy picture, it should also be mentioned for the benefit of globally operating shipping or stevedoring companies that discourses about what consists desirable corporate social responsibility policy vary somewhat from national context to national context, as, e.g., Kampfs (2007) analysis of US-based hypermarket chain Wal-Mart and the Danish- based global shipping company A.P. Moeller-Maersk demonstrates. If a global company is to communicate adequately to a very diverse group of stakeholders in multiple countries, it would therefore be advisable for the company to seek to find the greatest common denominator with regard to local stakeholder acceptance of its global CSR policy. Here, an analytical framework that is rather similar to the Greatest Common Denominator Approach to International HR Coordination, as presented in this modules Subsection 5.1 might be used toward this aim. i. Structured Assignment 1.15 DNVs promotion of CSR in the shipping industry For this assignment, you must first read certain sections of Det norske Veritas, 2004. Corporate Social Responsiblity and the Shipping Industry Project Report, Report No. 2004- 1535, Revision No. 1. Oslo, Norway: Det norske Veritas. Available at: http://www.he- alert.org/documents/published/he00375.pdf. The sections that you must read are as follows: Chapter 3 (Relevance of CSR in Shipping Industry), pp. 10-19 Chapter 4 (CSR in Shipping Case descriptions), pp. 20-25 Chapter 5 (CSR Issues for Shipping Companies), pp. 26-62 1. Summarize briefly in not more than 1000 words the case that DNV makes for the relevance of CSR in the shipping industry in Chapter 3 of the above external text.
2. Discuss (a) the extent to which the HRM department of a global shipping firm might be involved in the process of making and implementing decisions about the following MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 58
potential areas of CSR focus mentioned in Chapter 3 and (b) what will determine the extent of the HRM departments involvement: Choice of flags (Section 5.4, pp. 42-44) Corruption issues (Section 5.5, pp. 45-48) Transparency issues (Section 5.6, pp. 48-50) Issues pertaining to local community involvement (Section 5.7, pp. 50-53) Issues pertaining to responsibility for suppliers (Section 5.9, pp. 57-59) Here, your answer may be up to 2000 words in total. Beyond, this, if you so choose, you may include full bibliographical references to other relevant literature you have read, if you so choose. ii. Structured Assignment 1.16 Labour Union Perspectives on CSR For this assignment, you must first read Justice, D W., 2003. Corporate social responsibility: Challenges and opportunities for trade unionists. Labour Education 2003/1 (Issue theme: Corporate Responsibility: Myth or reality?), pp. 1 14 [online]. Available at: http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1009&context=codes 1. First, recalling your answer to question 1 of Structured Assignment 1.15, compare the arguments of Chapter 3 (Relevance of CSR in Shipping Industry) of the DNV text used in Assignment 1.15 with the arguments for and against corporate social responsibility brought forth by Justice. Point out any instances in which both texts (a) argue in the same way and (b) argue in opposite ways. Moreover, if (c) there are themes in the Justice (2003) text which you judge to be relevant to the unions and employees of the maritime transport and/or ports industries, yet insufficiently covered in the DNV text, please also list them and explain their relevance to these industries. You may use up to 1000 words to answer this question. Beyond, this, if you so choose, you may include full bi- bliographical references to other relevant literature you have read, if you so choose. 2. If you identified any areas in the Justice (2003) which you believe that employees in the maritime transport and/or port industries might consider important (point c in the first question above), please write a few words about how the HR department or the corporate strategy/corporate communications department of a maritime transport or port industry firm could tackle dialogue with these employees on the issue, if the employees initiate dialogue on these issues. If, conversely, you did not identify any specific issues, please write in general terms how the HR department or the corporate strategy/corporate communications department of a maritime transport or port industry firm should tackle dialogue with its employees and any relevant unions about the issues raised by Justice (2003), if the employees or one or more unions should commence a debate about these things with a specific maritime transport or port industry firm. You may use up to 600 words to answer this question. Beyond, this, if you so choose, you may include full bibliographical references to other relevant literature you have read, if you so choose.
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 59
iii. Structured Assignment 1.17 Comparison of medium-sized Norwegian and very small Greek shipowner cases and experiences with CSR This assignment builds on Det norske Veritas (2004), i.e. the reading for Structured Assign- ment 1.15. Additionally, you must read the following sections of Fafalious, I., Lekakou, M. & Theotokas, J., 2002 . Corporate social responsibliity in Greek Shipping. In Hoffmann, Jan, ed. IAME Panama 2002 Conference Proceedings. Santiago, Chile: CEPAL [online]. Available at: http://www.eclac.cl/Transporte/perfil/iame_papers/papers.asp or www.eclac.cl/Transporte/perfil/iame_papers/.../Fafaliou_et_al.doc : Section 3 (Corporate social responsibility and shipping industry), pp. 11-15 Section 4 ( Methodology), pp. 15-16 Section 5 (Survey findings), pp. 16-19 1. Discuss whether, in your opinion, it would be advisable for the small Greek shipowners who have commenced corporate social responsibilities initiatives to continue with their corporate social responsibility efforts, in the face of the results presented on p. 19. Here, you may write up to 400 words in your answer itself. Beyond, this, if you so choose, you may include full bibliographical references to other relevant literature you have read, if you so choose. 2. Based on Chapters 4 and 5 of Det norske Veritas (2004), i.e. the reading for Structured Assignment 1.15, make two categorised list of the local corporate social responsibility initiatives undertaken in Norway by the medium-sized firm Eidesvik mentioned in this text. On one list, list those initiatives which are only suited to a medium-sized firm or larger, such as Eidesvik; on the other, list those initiatives which also would be suited for the very small Greek firms. 3. Discuss the extent to which there may be special barriers to small shipowners in general with regard to CSR measures suggested in the following sections of Chapter 5 of Det norske Veritas (2004): o Subsection 5.2 (Employees and social responsibility, however stopping before Subsection 5.2.4 Reporting on employees and social responsibility ), pp. 28-40 o Subsection 5.8.2 (Responsibility for crew on chartered vessels?), pp. 54-55 o Subsection 5.9.1 (Relation to manning agent), pp. 57-59 Here, you may write up to 1000 words in your answer itself. Beyond, this, if you so choose, you may include full bibliographical references to other relevant literature you have read, if you so choose.
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 60
7. CONCLUDING REMARKS TO MODULE 1 GENERAL AND SHORE- BASED MARITIME HRM By reading the text sections of this module, including the required external texts and completing these structured assignments, you should have achieved a good introductory understanding of human resource management as a general field of practice and study, in relation to a firms or organisations overall strategy formulation and planning processes. Moreover, you should have achieved basic understanding for the process of managing human resources, including the role of stakeholders and situational factors, the formulation of policy and the monitoring of implementation and outcomes. Moreover, you should have received an introduction to specific unique features of the organisation of work on board ship e.g. the choice of flag state issue, the use of multinational crews, and the options of using ship management and crewing firms. As concerns ports, you have been introduced to various port organisation constellations: the service port, the tool port and the landlord model. Based on Mintzberg (1983) and other sources, a number of models of organisational structures have been presented; you should now understand them and be able to identify them and their key features when presented with sufficient information about existing organisations in both the maritime industries and other industries. Moreover, you have been introduced to the concepts of organisational and national culture and the common criticism of these terms as being static and perceived as being deterministic. Based on this, you should be able to explain how HRM personnel may and commonly do work with these types of cultures in strategic HRM and the limits of this work. Finally, as many transport chains involve multiple operators and there also most often are multiple firms working in a given port, you should be able to discuss the possibilities and limits for control and governance on the part of one given organisation in such multi-organisational constellations and also discuss the role of the boundary spanner in relation to such inter-organisational cooperation Examples of international variations in HR practice have been given, to heighten your awareness that not everything is done in exactly the same way everywhere. Here, you should have begun to develop your ability to analyse international differences in HR practices, and you should also be able to work at a global level with the greatest common denominator approach to HR coordination in maritime-specific situations. Finally, an introduction to ethics and to corporate social responsibility has been provided. Here, you should be able to explain what ethics are and to discuss the possible organisation- specific advantages and disadvantages of implementing a corporate social responsibility policy in a specific organisation as well as the advantages and disadvantages of this for the other stakeholders of the organisation. Should you have questions on the unit, please contact the course instructor or the author, Maria Anne Wagtmann, PhD at mariaannewagtmann@yahoo.com.
MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 61
8. REFERENCES Adams, J. S., 1976. The Structure and Dynamics of Behavior in Organizational Boundary Roles. Pp. 1175-9 in Dunnette, M.D., Ed., 1983. Handbook of Industrial and Organizational Psychology. New York NY USA: Wiley. Alasuutari, P., 1995. Researching Culture. Qualitative Method and Cultural Studies. Thousand Oaks CA USA/ London, UK/New Delhi, India: Sage. Albaum, G., Duerr, E. & Strandskov, J., 2005. International Marketing and Export Management, 5 th ed. Harlow UK: Pearson Education. Alderton, T. & Winchester, N., 2001. The Flag State Audit. Pp. 91-110 in Proceedings of the 2001 Seafarers International Research Centre Symposium. Cardiff UK: Cardiff University, Seafarers International Research Centre [online]. Available at: http://www.sirc.cf.ac.uk/pdf/Symposium%20Proceedings%202001.pdf [accessed 13 th March 2010] Aldrich, H. & Herker, D., 1977. Boundary Spanning Roles and Organization Structure. Academy of Management Review, 2(2), pp.217-30. Alvesson, M., 2004. Knowledge Work and Knowledge-Intensive Firms. Oxford UK: Oxford University Press. Amante, M.S.V., 2007. Labor Dimension of the Japan-Philippine Economic Partnership Agreement (JPEPA). [Online] Available at: http://www.ide.go.jp/English/Publish/Download/Vrf/pdf/vrf_429.pdf via a Google search using the article title. [accessed 13 th March 2010] Apeejay Shipping, 2010. Web pages in English [online] The organisation chart at: http://www.apeejayshipping.com/Organisation.html and the fleet information at: http://www.apeejayshipping.com/Fleet.html [accessed 13 th March 2010] Baird Publications, 2010. Web page in English [online]. Available at: http://www.bairdmaritime.com/index.php?option=com_content&view=article&id=110&Itemid=164 [accessed 13 th March 2010] Barnett, M. L., 2005. Searching for the Root Causes of Maritime Casualties Individual Competence or Organisational Culture? WMU Journal of Maritime Affairs, 4(2), pp. 131-145. Available at: http://www.solent.ac.uk/mhfr/resources/human%20error.pdf [accessed 13 th March 2010] Barnett, M., Gatfield, D., Overgaard, B., Pekcan, C. & Graveson, A., 2006. Barriers to Progress or Windows of Opportunity? A Study in Career Path Mapping in the Maritime Industries. WMU Journal of Maritime Affairs, 5(2), pp. 127-142, Available at: http://www.solent.ac.uk/mhfr/resources/Career%20Mapping.pdf [accessed 13 th March 2010] Beer, M., Spector, B., Lawrence, P.R., Quinn Mills, D. & Walton, R.E., 1984. Managing Human Assets. New York NY, USA: Free Press. Bielc, T., 2008. Complacency as Element of Maritime Accidents. Split, Croatia: Paper of the Faculty of Maritime Studies, University of Split. Available at: http://www.he- alert.org/documents/published/he00665.pdf [accessed 13th March 2010] Bloor, M., Thomas, M. & Lane, T., 2000. Health Risks in the Global Shipping Industry: An Overview. Health, Risk & Society, 2(3), pp. 329-340. Blue Water Shipping, 2010. Web page in English [online]. Available at: http://www.bws.dk/about/organisation/organisation-chart.aspx [accessed 13th March 2010] Botti, V.J., 2004. Multi-Angent System Technology in a Port Container Terminal Automation. ERCIM News, No. 56, January 2004, pp. 37-8. Available at: http://users.dsic.upv.es/grupos/ia/sma/publications/articulos/Art%edculo.pdf [accessed 13 th March 2010] Brown, T. & Brown, E., 2008. Life at Sea Survey 2007/8. Seafarers Attraction and Retention Survey Report Conducted October/November 2007. Tyne and Wear, UK: Shiptalk Limited/Glimour Research [online]. Available at: http://www.shiptalkjobs.com/survey_results/Attraction_and_Retention_Survey_Report.pdf [accessed 13 th March 2010] MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 62
Celik, M. and Er, I.D., 2008. Exploring the Key Aspects of Management Organizations in Shipping Business. Lex et Scientia, No. XV (Bucharest, Romania). Available at: http://lexetscientia.univnt.ro/ufiles/11.%20Turcia.pdf [accessed 13 th March 2010] Cetin, C.K. & Cerit, A.G., 2009. Organizational change at seaports: Impact on effectiveness. In: Pro- ceedings of the 2009 International Association of Maritime Economists Conference in Copenhagen, Denmark, 24th 26th June. Copenhagen, Denmark: Copenhagen Business School/IAME. Chartered Institute of Personnel and Development (CIPD), 2010. HR Profession Map. Web page. Available at: http://www.cipd.co.uk/hr-profession-map/professional-areas [accessed 13th March 2010]. Clegg, S., 2007. Something is happening here, but you dont know what it is, do you, Mister Jones? Paper presented to ICTS in the Contemporary World Seminar, Information Systems and Innovation Group, London School of Economics, 9 th October 2007. Sydney, Australia: Sydney University of Technology/ICAN. Available at: http://www.lse.ac.uk/collections/informationSystems/newsAndEvents/2007events/clegg2.pdf [accessed 13th March 2010] Chlomoudis, C.I. & C.D. Lampridis (2006): A Business Excellence Approach for the Port Industry, Paper presented at the International Conference Shipping in the Era of Social Responsibility, Argo- stoli, Cephalonia, Greece, 14-16 September 2006 [online]. Available at: http://corresea.com/index.php?option=com_rokdownloads&view=file&task=download&id=234%3Arisk- for-investments-4-5&Itemid=11 [accessed 13 th March 2010, however only available though a Google search for the title and a pdf-file] Commercial Naval Architects, 2010. Web page in English [online]. Available at: http://www.navalarchitect.com.au/ [accessed 13 th March 2010] Companhia de Navegao Norsul, 2010. Web pages in English [online]. Available at http://www.norsul.com/en/aempresa/ and http://www.norsul.com/en/thecompany/operationalarea.php [accessed 13th March 2010]. Couper, A.D., Walsh, C.J., Stanberry, B.A: & Boerne, G.L., 1999. Voyages of Abuse. Seafarers, Human Rights and International Shipping. London UK: Pluto Press. DeSombre, E.R., 2006. Flagging Standards Globalization and Environmental, Safety and Labor Regulations at Sea. Cambridge, Massachusetts USA: MIT Press. Det norske Veritas, 2004. Corporate Social Responsiblity and the Shipping Industry Project Report, Report No. 2004-1535, Revision No. 1. Oslo, Norway: Det norske Veritas [online]. Available at: http://www.he-alert.org/documents/published/he00375.pdf [accessed 13th March 2010] Edstrm, A. & Galbraith, J.R., 1977. Transfer of Managers as a Coordination and Control Strategy in Multinational Organisations. Administrative Science Quarterly, 22(2), pp. 248-63. Eitzen Group, 2010. Organisational diagram web page in English [online]. Available at: http://www.eitzen-group.com/index.php?pk_menu=8 [accessed 13th March 2010] Ellis, N. & Sampson, H., 2008. The Global Labour Market for Seafarers Working Aboard Merchant Cargo Ships 2003. Cardiff, UK: Seafarers International Research Centre [online]. Available at: http://www.sirc.cf.ac.uk/pdf/GLM%20for%20Seafarers.pdf [accessed 13th March 2010] Fafalious, I., Lekakou, M. & Theotokas, J., 2002 . Corporate social responsibliity in Greek Shipping. In Hoffmann, Jan, ed. IAME Panama 2002 Conference Proceedings. Santiago, Chile: CEPAL [online]. Available at: http://www.eclac.cl/Transporte/perfil/iame_papers/papers.asp or www.eclac.cl/Transporte/perfil/iame_papers/.../Fafaliou_et_al.doc [accessed 13th March 2010] Ford, D., Gadde, L.-E., Hkansson, H. & Snehota, I., 2003: Managing business relationships, 2 nd Ed. Chichester, UK : John Wiley & Sons. Friedman, M., 1970. The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine, September 13. Available at: http://doc.cat- v.org/economics/milton_friedman/business_social_responsibility or http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html [accessed 13th March 2010] Garberg, B., 2001. Value-adding Services in Roro-Shipping. Present Demand and Future Possibilities. Master Thesis. Gothenburg, Sweden: University of Gothenburg, Logistics and Transport Management, Master Thesis No 2001:23 [online]. Available at: MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 63
http://gupea.ub.gu.se/dspace/bitstream/2077/2444/1/Garberg_2001_23_inlaga.pdf [accessed 13th March 2010] Gee, J. P., 1999. An introduction to discourse analysis: theory and method. London, UK & New York, NY USA: Routledge. Gemnden, H. G. & Walter, A., 1995. Der Beziehungspromotor. Schlsselperson fr inter- organisationale Innovationsprozesse (Innovationsfhigkeit). Zeitschrift-fr-Betriebswirtschaft, 65(9), pp. 971-86. Gerstenberger, H. & Welke, U., 2008. Arbeit auf See : zur konomie und Ethnologie der Globalisierung, 2nd ed. Mnster, Germany: Verl. Westflisches Dampfboot. Gonzlez, M.M. & Trujillo, L., 2008. Efficiency measurement in the port industry: A survey of the empirical evidence. City University of London, UK: Department of Economics, School of Social Sciences: Paper No. 07/08 in the Department of Economics Discussion Paper Series. Available at: http://www.city.ac.uk/economics/dps/discussion_papers/0708.pdf [accessed 13th March 2010] Goulielmos, A.M. & Plomaritou, P., 2009. A review of marketing for tramp shipping. International Journal of Shipping and Transport Logistics, 1(2), pp.119-155. Hargett, T.R. & Williams, M.F., 2009. Wilh. Wilhelmsen Shipping Company: moving from CSR tradition to CSR leadership. Corporate Governance, 9(1), pp.73-82. Hansen, H.L., Laursen, L.H., Frydberg, M. & Kristensen, S., 2008. Major differences in rates of occupational accidents between different nationalities of seafarers. International Maritime Health, 59(1-4), pp.7-18. Available at: http://www.imh.mug.edu.pl/attachment/attachment/4758/2008t1.pdf [accessed 13th March 2010] Haugstetter, H. & Grewal, D. 2004. Innovative Techniques and Port Management: Implications for Port Organisations. IAMU Journal, 4(1), pp. 35-42 [online]. Available for online reading at: http://iamu- demo.annex.jp/Portals/5/book/J05_1.html#/4 [accessed 4th June 2010]. Hedlund, G. & Rolander, D., 1990. Action in heterarchies new approaches to managing the MNC. Chap. 1, pp.15-46 in: Bartlett, C.A., Doz, I. & Hedlund, G., eds., 1990. Managing the Global Firm. London UK: Routledge. Heseler, H., 2000. New Strategies of Port Enterprises and their Effects on the Structures in the Seaports, pp. 9-26 in Heseler, Heiner, Ed. Seaports in the Context of Globalization and Privatization. Bremen, Germany: University of Bremen [online]. Available at: http://www.maritim.uni- bremen.de/ports/ [accessed 13 th March 2010] Hoffmann, J. 2002. The cost of international transport, and integration and competitiveness in Latin America and the Caribbean. ECLAC FAL Bulletin, Vol. 191, No. 3 [online]. Available at: http://www.eclac.org/Transporte/noticias/bolfall/2/11072/FAL191e.htm [accessed 13th March 2010] Hoffmann, J. 2001. Latin American ports: results and determinants of private sector participation. International Journal of Maritime Economics, 3(2), pp. 221230. Hofstede, G. & itim (2009): itim international/Geert Hofstede TM Cultural Dimensions. Web page available at: http://www.geert-hofstede.com/ [accessed 13th March 2010]. Holden, N., 2002. Cross-Cultural Management. A Knowledge Management Perspective. Harlow, Essex UK: Pearson Education. International Labour Organisation, 2005. ILO code of practice: Safety and health in ports. Geneva, Switzerland: ILO [online]. Available at: http://www.ilo.org/public/libdoc/ilo/2005/105B09_39_engl.pdf [accessed 13 th March 2010]. Ircha, M.C., 2005. Cross Cultural Concerns in Port Training. Paper presented at the International Port Training Conference, Setubal, Portugal, May 7 11, 2005. Fredericton NB Canada: University of New Brunswick, the Transportation Group [online]. Available at: http://www.iptc- online.net/pdfs/18thpapers.pdf [accessed 13th March 2010] Jakobsen, E. W., Mortensen, A., Vikesland, M., and Cappelen, A.W., 2004. Attracting the winners: The competitiveness of five European maritime industries. Oslo, Norway: Kolofon. Justice, D W., 2003. Corporate social responsibility: Challenges and opportunities for trade unionists. Labour Education 2003/1 (Issue theme: Corporate Responsibility: Myth or reality?), pp. 1 14 MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 64
[online]. Available at: http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1009&context=codes [accessed 13th March 2010] Kampf, C., 2007. Corporate social responsibility: WalMart, Maersk and the cultural bounds of repre- sentation in corporate web sites. Corporate Communications: An International Journal, 12(1), pp.41- 57. Kahveci, M., & Sampson, H., 2001. Findings from a shipboard based study of multinational crews. Pp. 39-60 in Proceedings of the Seafarers International Research Centre Symposium 2001. Cardiff, UK: Cardiff University, Seafarers International Research Centre [online].. Available at: http://www.sirc.cf.ac.uk/pdf/Symposium%20Proceedings%202001.pdf [accessed 13th March 2010] Keceli, Y., Choi, H.R. & Park, N.K., 2007. Critical Success Factors of Information Systems in Kumport and Implications for Other Turkish Ports. Pp. 378-83 in Proceedings of the 2007 WSEAS International Conference on Computer Engineering and Applications. Gold Coast, Australia, January 17-19, 2007. Busan, Republic of Korea: Dong-A University, Department of MIS [online). Available at: http://atlas.cc.itu.edu.tr/~keceli/yayinlar_files/KUMPORT_Conference.pdf [accessed 13th March 2010] Khoury, G.M., Rostami, J. & Turnbull, PL 1999. Corporate Social Responsibility: Turning Words into Action. Ottowa ONT Canada: Members briefing, the Conference Board of Canada [online]. Available at http://www.conferenceboard.ca/documents.asp?rnext=184 [accessed 13th March 2010] Kilmann, R.H., Saxton, M.J. & Serpa, R., eds., 1985. Gaining Control of Organizational Culture. San Francisco CA USA: Jossey-Bass. Klikauer, T. & Morris R., 2002. Into murky waters: Globalisation and deregulation in Germanys shipping employee relations. Employee Relations, 24(1), pp.12-28. Knudsen, F., 2003. If you are a good leader I am a good follower. Work and leisure relations between Danes and Filipinos on board Danish vessels. Esbjerg, Denmark: Danish Center for Maritime Health and Safety, Report # 9, translated from Danish to English by Stebbing, M. (online]. Available at: http://www.soefartensledere.dk/WEB/Templates/Normal.aspx?Page=8d8cd5aa-18cb-49e2-8db0- 2250409b0906 [accessed 13th March 2010]. Kress, G., 1995. The social production of language. History and structures of domination. Pp. 169-91 in Fries, P. og M. Gregory, eds, 1995. Discourse in society: Systemic functional perspectives. Norwood NJ USA: Ablex. Li, K. X. & Zheng, H., 2008. Enforcement of law by the Port State Control (PSC). Maritime Policy & Management, 35(1), pp.61-71. Liberman, L. & Torbirn, I., 2000. Variances in staff-related management practices at eight European country subsidiaries of a global firm. International Journal of Human Resource Management, 11(1), pp.37-59. Llcer, F.J.M., 2003. Open registers: Past, present and future. Marine Policy, 27(6), pp. 513-23. Lwendahl, B.R., 2000. Strategic Management of Professional Service Firms. Copenhagen, Denmark: Copenhagen Business School Press. Maritime & Port Authority of Singapore, 2010. Web page in English [online]. Available at: http://www.mpa.gov.sg/sites/global_navigation/about_mpa/org_chart_divisional_roles.page [accessed 13th March 2010] Midoro, R., Musso, E. & Parola, F., 2005. Maritime liner shipping and the stevedoring industry: market structure and competition strategies. Maritime Policy & Management, 32(2), pp. 89-106. Milgrom, P. & Roberts, J., 1992. Economics, Organization and Management. Englewood Cliffs NJ USA: Prentice Hall. Mintzberg, H., 1983. Structure in Fives: Designing Effective Organizations. Englewood Cliffs NJ USA: Prentice Hall. Mitroussi, K., 2004. The ship owners stance on third-part ship management: An empirical study. Maritime Policy and Management, 31(1), pp. 31-45. Molenaar, E. J., 2007. Port State Jurisdiction: Toward Comprehensive, Mandatory and Global Coverage. Ocean Development & International Law, 38(1-2), pp.225-57. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 65
Nielsen, K., 2000. Personalearbejde i teori og praksis et overblik. Chap. 1, pp.35-59 in Nielsen, J. & Mlvadgaard, O., eds., 2000. Virksomheders personalearbejde med eksempler fra forskning og praksis. Aalborg, Denmark: Aalborg University, LEO-Series, Netherlands Shipping Training Centre, 2010. English-language web pages [online]. Available at: http://www.nstc.ph/cgi/index.php?item=links [accessed 13 th March 2010] Nigerian Ports Authority, 2007. English-language web pages of the Nigerian Ports Authority, including main page at: http://www.nigerianports.org/default.aspx, the Statutory duties and functions page at: http://www.nigerianports.org/dynamicdata/statutory.aspx?id=2 and the Logos port page at: http://www.nigerianports.org/AboutUsLagosPort.aspx?id=3 [accessed 13th March 2010]. Norwegian Training Center Manila, 2010. English-language web pages [online]. Available at: http://www.ntcm.com.ph/ [accessed 13 th March 2010] OECD, 2003. Availability and Training of Seafarers. Report prepared for the OECD Maritime Transport Committee by Precious Associates Limited. Paris, France: Organisation for Economic Co-operation and Development, Directorate for Science ,Technology & Industry. Available at: www.oecd.org/dataoecd/32/62/2489394.pdf [accesssed 13th March 2010]. Palmer, S. 1999. Current port trends in a historical perspective. Journal for Maritime Research, December 1999 [online]. Available at: http://www.jmr.nmm.ac.uk/server/show/conJmrArticle.17 [accessed 13th March 2010]. Panayides, P., 2001. Professional ship management: marketing and strategy. Aldershot, UK: Ashgate Publishing Limited. Pando, J., Araujo, A. & Javier, F.M., 2005. Marketing management at the world's major ports. Maritime Policy & Management, 32(2), pp.67-87. Parker, C. J., 2003. The Role of Professional Associations in Shipping. WMU Journal of Maritime Affairs, 2(2), pp.99-113. Petrache, A.-M., 2009. The collapse of ENRON, a classic case of corporate social irresponsibility. Economia seria Management, 12(2), pp.51-7 [online.], Available at: http://www.management.ase.ro/reveconomia/2009-2s/10.pdf. Phillips, N. & Hardy, C. 2002. Discourse Analysis. Investigating Processes of Social Construction. Thousand Oaks CA USA/ London, UK/New Delhi, India: Sage. Pomeroy, V. 2006. Perception and management of risk-dependence on people and systems. Paper presented at the World Maritime Technology Conference, London, UK, 6-10 March. London, UK: Lloyds Register. Available at: http://www.he-alert.org/documents/published/he00580.pdf [accessed 13th March 2010]. Productivity Commission, 1998. International Benchmarking of the Australian Waterfront. Canberra, Australia: Research Report, AusInfo [online]. Available at: http://www.pc.gov.au/research/benchmark/wtfrnt. [accessed 13th March 2010] Rebollo, M., Julian, V., Carrascosa, C. & Botti, V., 2000. A MAS Approach for Port Container Terminal Management. Lecture notes in Computer Science. Valencia, Spain: Polytechnical University of Valencia [online]. Available at: http://users.dsic.upv.es/~vinglada/download/MAS_workshop_final.pdf [accessed 13th March 2010] Reich, R.R., 2007. Supercapitalism: the transformation of business, democracy, and everyday life. New York NY USA: Borzoi Books/Alfred A. Knopf. Sampson, H., 2004. Romantic rhetoric, revisionist reality: the effectiveness of regulation in maritime education and training. Journal of Vocational Education and Training, 56(2), pp.245-68. Sampson, H., 2003. Equal Training in an Unequal World: an exploration of global MET standards. Proceedings of the SIRC Symposium 2003. Cardiff UK: Cardiff University, pp. 25-40 [online]. Available at: http://www.sirc.cf.ac.uk/pdf/Symposium%20Proceedings%202003.pdf [accessed 13th March 2010] Snchez, R.J., Hoffmann, J., Micco, A., Pizzolitto, G.V., Sgut M. & Wilmsmeier, G., 2003. Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs. Maritime Economics & Logistics, 5(2), pp. 199218 [online]. Available at: http://www.palgrave- journals.com/mel/journal/v5/n2/full/9100073a.html [accessed 13th March 2010] Schein, E.H., 1985. Organisational Culture and Leadership. San Francisco CA USA: Jossey-Bass. MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 66
Schultz, M., 1995. On Studying Organizational Culture. Diagnosis and Understanding. Berlin, Germany & New York NY USA: de Gruyter. Shea, I.P., 2005. The organisational culture of a ship: A description and some possible effects it has on accidents and lessons for seafaring leadership. Launceton, Tasmania, Australia: Ph.D. dissertation, University of Tasmania [online]. Available at: http://eprints.utas.edu.au/1023/2/02Whole.pdf [accessed 13th March 2010] Slack, B., Comtois, C. & McCalla, R., 2002. Strategic alliances in the container shipping industry: a global perspective. Maritime Policy & Management, 29(1), pp. 65-76. Theotokas, ., Progoulaki, M., Tsamourgelis, I. & Tsagari, E., 2006. South-Asian seafarers on board Greek- owned ships: organisational, managerial and cultural issues. Paper presented at the 2nd International Conference on EU- East and South- Asia Trade, Investment, Logistics and E- Business, Chios, Greece, October 9-11. Chios, Greece: University of the Aegean, Department of Shipping, Trade and Transport. Turnbull, P.J. & Wass, V.J.,2007. Defending Dock WorkersGlobalization and Labor Relations in the World's Ports. Industrial Relations, 46(3),pp. 582-612. Ugboma, C., Ibe, C. & Ogwude, I.C., 2004. Service quality measurements in ports of a developing economy: Nigerian ports survey. Managing Service Quality, 14(6), pp. 487-495, available at: http://www.emeraldinsight.com/Insight/ViewContentServlet;jsessionid=077B57C6BBA4DE4243A0C61 7433B7178?Filename=Published/EmeraldFullTextArticle/Articles/1080140605.html [accessed 13th March 2010]. Valentine, V.F. & Gray, R., 2002. An Organisational Approach to Port Efficiency. In Hoffmann, J., ed. Proceedings of the International Association of Maritime Economics (IAME) 2002 Conference in Panama, 13 15 November 2002. Santiago, Chile: CEPAL [online]. Available at: http://www.eclac.cl/transporte/perfil/iame_papers/proceedings/AgendaProceedings.html [accessed 13th March 2010]. Vezzoso, G., 2000. The Restructuring of the Port of Genoa from the Compaquia Portuali to a port of enterprises. Pp.75-87 in Heseler, H., ed., 2000. Seaports in the Context of Globalization and Privatization. Bremen, Germany: University of Bremen Press [online]. Available at http://www.maritim.uni-bremen.de/ports/ [accessed 13 th March 2010] Walton, R. E., 1987. Innovating to Compete. Lessons for Diffusing and Managing Change in the Workplace. San Francisco CA USA & London UK: Jossey-Bass. Wang, Y.Q. & Gu, P., 2005. Reducing intercultural communication barriers between seafarers with different cultural backgrounds. Paper presented at the 2005 IAMU General Assembly in Malm, Sweden 24-26 October. Tokyo, Japan: International Association of Maritime Universities [online]. Available at: http://www.iamu-edu.org/generalassembly/aga6/pdf/s3-wang.pdf [accessed 13 th March 2010] Weber, M. , 1922. Wirtschaft und Gesellschaft, Grundri der verstehenden Soziologie. Dritter Teil : Typen der Herrschaft, Kapitel VI. Brokratie pp. 650-78. Available at: http://www.scribd.com/doc/16803005/Weber-Max-Wirtschaft-Und-Gesellschaft [accessed 13th March 2010]. Welch, D., 2004. Determinants of International Human Resource Management Approaches and Activities: a Suggested Framework. Journal of Management Studies, 31(2), pp. 139-164. Wikiepedia, 2010a. Business ethics. e-Encyclopedia article, available at: http://en.wikipedia.org/wiki/Business_ethics [accessed 13th March 2010] Wikipedia, 2010b. Human resource management. e-Encyclopedia article, available at: http://en.wikipedia.org/wiki/Human_resource_management [accessed 13th March 2010] Wikipedia, 2010c. Fordism. e-Encyclopedia article, available at: http://en.wikipedia.org/wiki/Fordism [accessed 13th March 2010] Wikipedia, 2010d. Golden Rule. e-Encyclopedia article, available at: http://en.wikipedia.org/wiki/Golden_Rule [accessed 13th March 2010] Wikipedia, 2010e. Post-fordism. e-Encyclopedia article, available at: http://en.wikipedia.org/wiki/Post- fordism [accessed 13th March 2010] MODULE 1, INTRODUCTION TO MARITIME AND PORT HR - BY MARIA ANNE WAGTMANN Date: 04/06/2010 International Maritime Human Resource Management Page 67
Wikipedia, 2010f. Scientific management/Taylorism. e-Encyclopedia article, available at: http://en.wikipedia.org/wiki/Taylorism [accessed 13th March 2010] Winchester, N., 2005. Global regulation of seafarer certification. Pp.7-27 in Proceedings of the SIRC Symposium 2005. Cardiff UK: Cardiff University [online]. Available at: http://www.sirc.cf.ac.uk/pdf/Symposium%20Proceedings%202005.pdf [accessed 13th March 2010] Winchester, N., Sampson, H. & Shelly, T., 2006. An Analysis of Crewing Levels. Findings from the SIRC Global Labour Market Survey. Cardiff UK: Seafarers International Research Centre [online]. Available at: http://www.sirc.cf.ac.uk/pdf/Analysis%20of%20crewing%20levels.pdf [accessed 13th March 2010] World Bank, 2008a. Port Reform Toolkit. Module 3 Alternative Port Management Structures and Ownership Models. 2 nd ed. Washington, DC, USA: World Bank [online]. Available at: http://www.ppiaf.org/documents/toolkits/Portoolkit/Toolkit/pdf/modules/03_TOOLKIT_Module3.pdf [accessed 13th March 2010]. World Bank, 2008b. Port Reform Toolkit. Module 7 Labor Reform and Related Social Issues. 2 nd ed. Washington, DC, USA: World Bank [online]. Available at: http://www.ppiaf.org/documents/toolkits/Portoolkit/Toolkit/pdf/modules/07_TOOLKIT_Module7.pdf [accessed 13th March 2010]. Wu, B. & Winchester, N., 2005. Crew study of seafarers: a methodological approach to the global labour market for seafarers. Marine Policy, 29(4), pp. 323-30.
The Forwarder´s Concern: An introduction into the marine liability of forwarders, carriers and warehousemen, the claims handling and the related insurance