Self Enhancement Through Discipline & Integrity, Commercial Skill & Teamwork

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THE PRINCIPLE OF HUMAN RESOURCES IN SHIPPING INDUSTRYModule 1.0HR Issues in Shipping Management2Think about thisWhat is a ShipWhat is Shipping

Which one needs Manpower?Which one we are concerned with?What are the differences in terms of Manpower requirement?3Seafarer4A sailor, seaman, mariner, or seafarer is a person who navigates waterborne vessels or assists as a crewmember in their operation and maintenance.

Coverage - of HR in SI1.1 HRM Shipping Best Practices1.2 Global Shipping HRM Current Issues and Challenges1.3 HR Role in Shipping Companies1.4 Organizational Culture & International HRM Shipping Companies1.5 International Shipping HR Procedures: Recruitment and Assessment Process1.6 International Shipping HR Compensation5

Ship management / Ship ManagerWhen a ship is ready for operation carrying goods, a ship management team is engaged to maintain and operate the vessels. The function of this team is to provide the owner with support throughout the occupancy or charter of the vessel. Most Management companies provide the owner or operator with crew on board. As soon as ship is ready the management company takes over and provide management support to the owner. Most Management companies also offer other services like inspection prior to purchase, supervision during building, crew management and supply and ship lay-up solutions.6

3 types of ship managers

Many ship management activities are integrated into large owner-operator companies, like the big container Iiners (such as Maersk, MSC or Hapag Lloyd) or exist as separate group companies (such as NYK Ship management, Columbus Ship management from Hamburg Sd), that also serve external ship owners. 1. Many tanker and bulker owners manage their own vessels in own shipping entities and charter them out. 2. However, a significant portion of that market is served by 3rd party ship management companies, which provide ship management services to 3. ship owners (such as V.Ships, Anglo Eastern or Columbia ) without being a significant owner themselves7 3 Areas of Activities of SMOrganizationally, - many shipping companies re-insource crewing activities again to gain more control and quality than with purely temporary workers via crewing agencies. SM build up a pool of own officers that keep coming back. Culturally - a lot of focus is given to training, development, welfare package and teamwork. Today everybody stays in their cabin with their note-book, which poses a challenge to teamwork and a feeling part of a company or a bigger task.Process-wise, re-insourced crewing processes need proper system support also given the increasing requirements of the Maritime Labour Convention (MLC). In the past this has been an investment area of the big global crew managers, but many respondents stated they look into this area more intensively now. 8

HRM Shipping Best PracticesConvention Adopted by ILO, Port State, and Flag State with regard to;1. Industrial Relation2. Negotiation Agreement and Collective Agreements3. Recruitment and Personnel Administration4. The use of third party recruitment services

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HRM Shipping Best Practices5. Contract of employment6. Calculation and payment of wages7. Repatriation8. Hours of work, discrimination, and abuse9. Health safety and welfare Good quality people will be attracted and stay with companies which provide favourable T&C of employment 10 Best Practices 1Invest in culture and teamworkMulti-cultural teams pose a challenge to human interaction, so invest in teamwork and a team culture is still seen as worthwhile and highly recommended. The quality of the work depends on the whole team, not a smart chief engineer. The team should also include the shore-side personnel. It requires time and opportunities to be given by the management (i) for proficiency in a common language (English) and (ii) personal interaction, in common trainings or regular events, on the ship & shore.11 Best Practices 2Invest in crew welfare packagesTo retain qualified crew members with attractive remuneration; leave packages; providing training. As young and qualified crew become harder to find, many quality ship managers invest in infrastructure that connect the employees onboard to the outside world as the young generation has got used to in the last decade. This typically involves allowing an easy option to call home, Internet access onboard and private notebooks in the ships network. Crew welfare will also be the driver to better connect vessels to shore communication-wise, much stronger than any business application.12 Best Practices 3Integrate training, appraisal & development mgt systemsThe next level of crewing best practice comes when training, appraisal & development schemes run integrated as a Human Resource Development Management system. Training is adapted to current development needs that come from the current work appraisals but also from the laid out career development path of the crew member. Active feedback of the superiors as well as the crewing manager is driving this process. Demanding tasks and developing skills go hand in hand. A transparent hiring and development process from cadet to master, regardless of their nationality, is another building block to that.

13 Best Practices 4Use a combination of personal and computer-based trainingWith higher safety concerns, technically more challenging vessels and younger crew, training is a key concern for crew managers. Many computer-based training offers are available in the market that will not substitute personal, on-the-job or classroom-style application but complement them. Timing and speed can be better adapted to personal preferences, checking learning success and results can be integrated and trainings can be well suited to onboard work hours. Crew training should include the day-to-day skills, personal safety, regulations etc., but more focus should be laid on new technologies and time for emergency response on bridge and engine simulators, as respondents in the study put it.14Best Practices 5Use an integrated crewing solution onboard and onshoreThe times of Excel sheets and pinboards for crewing activities are definitely over for those who want to be involved in crewing processes.Integrated crewing software packages offer functions for all data, certificate etc. administration as well as the crew planning and scheduling, (automatically) matching manning requirements with available crew for the next months.The integration also links up processes in-house with local crewing agencies that work in the same system, receive requests for open positions, enter all master data etc. In addition, upcoming MLC requirements need a further proof of compliance, i.e. documentation that is best prepared and managed electronically. Many ship managers get ready for MLC process-wise and use this change to implement an electronic crewing system, as it achieves two goals in one go

15The crew

http://en.wikipedia.org/wiki/Seafarer%27s_professions_and_ranks

Epaulettes worn by Officers on merchant shipsCrew ListNowadays shipping has improved a lot, with modern electronic equipments & machineries. You can imagine a ship like a moving factory with its cargo. The ship consists ranks such as:1. Master, 2. Chief Mate(also called Chief Officer), 3. 2nd Mate(also called 2nd Officer), 4. 3rd Mate(also called 3rd Officer), 5. Deck Cadets, 6. Chief Engineer,7. 2nd Engineer,3rd Engineer,4th Engineer, Engine Cadets, 8. Electrician,9. Boatswain(also called Bosun /Deck Foreman),10. Pump man, 11. Able bodied Seaman(AB)(also called Quarter Master), 12. Ordinary Seaman(OS), Fitters, Oilers, Wipers(also called Motorman), 13. Chief Cook & Steward etc.

18Master The Master is the person holding the Deck Class I certificate of competency (COC) (Unlimited/Foreign going) .He is the commanding person of the ship & the highest ranked Deck Officer.It is normally said & believed that if you consider the ship as an island the Master is considered as the King of that island. But that doesnt mean if he tells, to jump into the sea crew will do it. 1920Duties & Responsibilities of Master are as follows1. Overall in charge 2. Commanding the ship. 3. Implementing law & order onboard ship.4. He is the person to sign Bill of lading for cargo.5. The Engines are at Masters disposal.6. Taking disciplinary actions against any crew member. 7. He should arrange provisions, stores, fuel (under Chief Engineer, Garbage disposals, Shore passes, Salary particulars & cash advance etc.8. In port handling Port authorities, Immigration authorities, Custom authorities, Narcotics authorities etc.9. Assisting any other vessel in Emergency.10. Training the crew & conducting effective drills.11. The Master is the person to contact the office directly from the ship & person to be contacted by the office for any matter onboard.12. In case of abandoning the ship in an emergency, the verbal order has to be given by the Master.13. Masters decision is final, whether right or wrong crew has to stick to it during that particular moment.

Chief Mate

The Chief Officer is a person holding Deck Class-II certificate of competency. He may hold the Class-I COC as well. With further experience or exams he will become a master.

2122His duties & responsibilities are as followsHe has to load & discharge the Cargo. Preparing loading & discharging plans for cargo. At sea his Bridge watches are 0400AM 0800 PM & 1600PM 2000 PM.He is the person in charge for Deck & all deck ratings, Bosun, Pump man, ABs, OSs, Chief Cook & Steward. Most of the time he acts as the vessels safety officer & he can delegate his duties regarding safety to 3rd Mate. Maintenance of Deck & overhauling of Deck machineries.Anchoring the vessel at anchorage.In charge on deck for any emergency & reporting master as appropriate.Making repair lists & indents.Handling mooring stations.GMDSS communication.232nd MateThe 2nd Mate is a person holding Deck Class-III certificate of competency. He may hold the Class-I, Class -II COC as well. With further experience or exams he will become a Chief Mate.24His duties & responsibilities are as follows1. Passage or Navigation planning. 2. At sea Bridge watches are 0000 0400 & 1200 1600.3. Correcting charts, Sailing Directions, List of light & Fog signals, Radio signals & updating Navigational warnings etc.4. Preparing Reports.5. Testing of Bridge equipment.6. Preparing Deck log abstract at the end of each month.7. In charge of GMDSS communication.8. Maintaining ship`s library & publications in order.9. Assisting Chief Mate in port while loading & discharging. At port his duty time is 0000 0600 & 1200 1800.10. Handling mooring stations.11. Acting as the Medical Officer. 3rd Mate

The 3rd Mate is a person holding Deck Class-III certificate of competency. He may hold the Class-I, Class -II COC as well. With further experience he will become a 2nd Mate.25His duties & responsibilities are as follows1. Maintenance of Life Saving Equipments & Fire Fighting equipments under Safety Officer`s instruction.2. At sea his Bridge watches are 2000 0000 & 0800 1200 .3. Preparing drill reports.4. Handling port papers on behalf of master.5. GMDSS communication.6. Assisting Chief Mate in port while cargo loading & discharging. At port, his duty time is 0600 1200 & 1800 0000.7. Handlingmooring stations.26Deck CadetThe Deck Cadet is a trainee Navigation Officer. He may be a fresher to sea. He has to perform & learn jobs under Chief Officer. He does various jobs starting from cleaning to Navigating ships. The Deck cadet must never be used as a cheap labourer by his seniors. He must be taught & guided.

27Chief Engineer

The Chief engineer is the person holding the Engine Class I Certificate (Unlimited/Foreign going) .He is the overall in charge for Engine Room & the highest ranked Engineer Officer.

28His duties & responsibilities as followsHe should give work orders for Engine room & check the progress of work. He should be present in Engine room during major maintenance works. E.g. Piston overhaulingBunker Calculations. The 4th Engineer assists him for this work.Implementing law & order in Engine room.He is the person to handle the Main Engine during critical periods.Most of the technical jobs come under him & he will report to company with Masters approval. In charge for Engine during any emergency & reporting master as appropriate.

292nd EngineerThe Second engineer is the person holding the Engine Class II Certificate (Unlimited/Foreign going). He may hold the Class-I COC as well. With further experience or exams he will become a Chief Engineer.

30His duties & responsibilities are as followsHe is the Chief Engineers assistant & he is the one who performs most of the jobs on behalf of Chief Engineer.All machinery items, steering gears, Pumps, auxiliary machinery & main engine maintenance come under him.At sea, his Engine watches are 0400AM 0800AM & 1600PM 2000PM.But nowadays most of the ships are equipped with UMS(Unmanned Machinery Spaces) system so he has to work 0800AM-1700PM. He is the person assistant in charge for Engine room & all Engine ratings, Fitters, Oilers & Wipers comes under him. He is the one to give daily the work schedule for them.Making repair lists & indents.

313rd EngineerThe Third Engineer is the person holding the Engine Class III Certificate (Unlimited/Foreign going). He may hold the Class-I , Class- II COC as well. With further experience or exams he will become a 2nd Engineer.His duties & responsibilities as follows1. Operation & Maintenance of Generators.2. Operation & Maintenance of Boilers.3. Conducting Boiler water test & cooling water tests.4. Operation & Maintenance of propulsion machinery 5. At sea his Engine watches are 0000 0400 & 1200 1600.But nowadays most of the ships are equipped with UMS(Unmanned Machinery Spaces) system, so he has to work 0800-1700.

32334th EngineerThe Fourth Engineer is the person holding the Engine Class III Certificate (Unlimited/Foreign going). He may hold the Class-I, Class- II COC as well. With further experience he will become a 3rdEngineer.His duties & responsibilities are as follows1. Taking bunkers & assisting Chief Engineer in bunker calculations.2. Operation & maintenance of Sewage plant.3. Operation & maintenance of Incinerator.4. Operation & maintenance of Oily water separator.5. Operation & maintenance of Fresh water Generator.6. Operation & Maintenance of Air Compressor.7. Management of Sludge & Bilge.8. At sea his Engine watches are 0800 1200 & 2000 0000.But nowadays most of the ships are equipped with UMS system, so he has to work 0800-1700Engine CadetThe Engine Cadet is a trainee Engineer Officer. He may be a fresher to sea. He has to perform & learn jobs under 2nd Engineer. He does various jobs starting from Bilge cleaning to operating the Main Engine. The Engine cadet must never be used as a cheap labourer by his seniors. He must be taught & guided.ElectricianThe Electrician doesnt hold a Certificate of Competency. But his rank is equal to 2nd Mate & 3rd Engineer. He will work under Chief Engineer. He performs various jobs related to Electricity starting from changing light bulbs to Generator repairs. Electricians start as Electrician cadet or they come from Ex Navy.

3435BosunThe Bosun is the Deck Foreman or Crews spokesman. The senior AB will become the Bosun. He will perform various jobs on Deck. Wire splicing, Mixing paints, Cleaning, arranging stores, assisting Chief Mate during Anchoring & most of the time supervising the Deck ratings. He must bring any problem related to the crew to Chief Mates concern. Pump manThe Pump man rank exists only on Tanker Ships. This rank is equal to Bosun. But most of the time he works independently & takes job orders directly from Chief Mate. He plays a major part during loading & discharging, mainly opening valves as per Chief Mates instruction, taking Ullages & soundings etc. 36Able Bodied seamanDoes maintenance work on deck. He does Chipping, Painting, Washing, Cleaning, Greasing Equipment etc. He will also steer the ship & assist duty officer in Bridge watch. The AB with experience, can become a Bosun.Ordinary seamanDoes maintenance work on deck. He does Chipping, Painting, Washing, Cleaning, Greasing Equipment etc. The difference between OS & AB is that OS will not steer the ship & he will not assist the Bridge watch. The Ordinary seaman with experience, steering practice & with a certified watch keeping, can become an AB.37FitterExpert in welding, grinding, boring & gas cutting. He operates Lathe Machine as well. Works in the Engine department under 2nd Engineer. But also Deck fitters & Voyage fitters as well. His rank is equal to Bosun.OilerDoes maintenance work in Engine room. Assists the duty Engineer at watch(if noUMS). Assist Engineers in overhauling Machinery, Cleaning & Painting etc. Rank is equal to AB. At times the oiler with experience may become as a Pump man.WiperDoes cleaning jobs in Engine room. Assist Engineers in overhauling of Machinery. With experience he may become an Oiler. 38Chief CookPrepares meals for all personnel onboard. It is a very critical job with Multi National crew. Because each person will like different food & different cooking style. Most of the time food will be prepared to suit the majority crews nationality style. He must also know the different menu. He has to assist Master when ordering for provisions. His rank is equal to Bosun.StewardChief Cooks assistant. He must help Chief cook in cooking, specially cleaning & cutting vegetables. He must serve food for all Officers & he should be present in Officers mess during meal times. He has to wash all plates & cutleries. He cleans officers cabins & wash linen etc. His rank is equal to OS

EVOLUTION OF ORGANIZATIONAL STRUCTURE - THE BACKBONE4040Organizational Structure 41Defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.Types of Organizational Structure42Organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals. Organizations large and small can achieve higher sales and other profit by properly matching their needs with the structure they use to operate. There are three main types of organizational structure: functional, divisional and matrix structure. Tall & Flat OS43The structure of business organizations can be described as either tall or flat, which refers to the levels of management in the organization's hierarchy and the corresponding distance between front-line or entry-level employees and top management. Whether a business has a tall or a flat structure can have important impacts on a variety of elements within the organizational culure.

GlobalizationTraditional and Current Organizational StructureCentralization & DecentralizationHuman Capital DevelopmentThe Focus, Interest, Technology ChangeThe Structure/Capacity ChangeGlobal Production/MarketingGlobal Impact, International ShippingBusiness Model Change, so Organization

44What Is Globalization? 45Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

Therefore Roles and Responsibilities Change46

HR/Fleet Manning RolesEstablish fleet manpower planning and recruitment policyManage crew scheduling and crew movementsEstablish selection and control procedures , training, and development of fleet personnelTo provide contract management, administration, and welfare services to fleet personnelTalent management

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Organizational Structure on Both Shipboard Management & Shore Fleet Manning Department (Distributed to Students)48Selari48

HRM Current Issues & Challenges Challenges Arising from Globalization Relationship between Organizational Strategy and HR Policies and ProceduresHuman Element in International ShippingChanging Nationality of SeafarersIncreasing Demand for Competent SeafarersShortage of Berthing for Practical Training

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HRM Current Issues & ChallengescontEnhance Quality RecruitmentThe Need to Reduce WastageDependence on Ageing OECD OfficersProgress of Asian Seafarers to Senior PositionsStringent Supervision on Certification of Maritime Qualification50

HRM Current Issues & ChallengescontUnfair Treatment Towards SeafarersCriminalization/Impact in the Maritime ContactAbandonment of SeafarersInconsistency in LegislationOpportunity in O & G / availability of jobs ashore

5152Issues on Ship Management - CrewingShips carry over 90 % of global trade, and the international commerce widely depends on shipping. Requirements of the modern global economy put pressure on shipping companies and management aboard, which creates challenges as shipping is already a high-risk industry. For these reasons it is important to research management of shipping. It focuses on management on-board and the effects the shore-based management has on the ship crew. Safety has always been a major concern in shipping, and safety management has become one of the most essential research topics in ship management. Leadership and management of human factors are the things that almost all research themes relating to management of shipping aboard have in common. Human error contributes to 80 % of accidents at sea, so Communication and management of non-technical skills are important in safety and security management as well as in crew resource management and in management of human errors. Challenges1. Rework the vision and mission of the company.HRM is becoming increasingly involved with strategic planning and the development of means by which people can work proactively toward the achievement of organizational objectives. This means a broader perspective focused on objectives and results. It implies personal commitment by each worker to the company's goals. The need for this personal commitment means that employee education, communication, and involvement now become fundamental. This being the case, companies develop and emphasize an HRM philosophy to which top management is deeply committed, and which is clearly articulated and practiced by all employees. HR planning is closely linked with strategic planning, so as to support the company mission and give incentives to support its achievement.

53542. Information & Knowledge age Information and knowledge have replaced manufacturing as the source of most new jobs. Work performed in factories by machines is being replaced by work in offices or at computer terminals. And instead of working with things, people increasingly work with ideas and concepts. The information age made knowledge the most important organizational resource. The traditional factors of production - nature, capital, and labour- have already exhausted their contributions. Now the important activities are the generation, structure, development, spreading, sharing and application of knowledge; belongs to the people, the human capital. Successful companies are becoming learning organizations. Organizational effectiveness will increasingly depend on attracting, utilizing and retaining people who can use their knowledge to solve problems, create services, develop new work processes and satisfy customer needs.553. Attracting and Retaining Talent One of the greatest challenges of human resource management today is to create HR Capabilities that increase and sustain organizational performance. The ability to attract and retain talent is a core HR capability that is critical to achieving sustainable business performance. Retaining the employees has become more crucial. One can retain the employees in current situation only when a company creates a good employer brand, internally as well as externally, by ensuring that people have good jobs which make them feel proud of working for the organization.564. Empowering Employees Empowering is mutual influence; it is the creative distribution of power; it is shared responsibility; it is vital and energetic, and it is inclusive, democratic, and long-lasting. Empowering enables people to use their talents and capabilities, fosters accomplishment, invests in learning, finds the spirit in an organization and builds effective relationships, informs, leads, coaches, serves, creates, and liberates. Becoming an empowering manager, therefore, involves both who you are and what you do.575. Managing Global Workforce The biggest challenge the organization around the globe facing is:To know the social classes and categories from which the new global workers are recruited, and To understand the systems of education and training that shape them so that they can be made socially and culturally fit to serve customers.586. Enhancing the supplementary Services In todays competitive world the workforce are heavily loaded with work and stress associated with it i.e. mental stress as well as physical stress. To have a sound body and sound mind it is necessary to develop certain competencies to survive with the stressful situations. The growth of an supplementary industry like computer training institutes, manpower consultants, soft skills and cultural training consultants, psychological counsellors, spiritual guides, stress and time management trainers, gyms, recreational facilities and health-related services, yoga teachers, suggest that new forms of subjectivity are being produced not only through the work itself, but also through the deliberate shaping of personalities and bodies to be fit for the global Challenges598. Challenges of Mergers & Acquisitions

Liberalisation, Privatisation and Globalisation (LPG), is as dangerous as beneficial. Increasing competition has forced the organisations to device ways and means to grow, perform and achieve excellence. Mergers and acquisition are being accepted as one of the most effective techniques to strengthen a companys market position and adopt a new technology to gain competitive advantage over other organisations. 609. Managing Cross Cultural Communication

"There are hundreds of languages in the world, but a smile speaks them all." AnonymousCulture is Software of mind, it is concerned with beliefs and values on the basis of which people interpret experiences and behave, individually and in groups. Cultural statements become operationalised when executives articulate and publish the values of their firm which provide patterns for how employees should behave. Firms with strong cultures achieve higher results because employees sustain focus both on what to do and how to do it. 617. Managing Workplace Diversity The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena, which must be one of the important organisational goals to be attained

Organizational Culture A system of shared meaning held by members that distinguishes the organization with others organizationThere is a strong relationship between labour turnover and an organizational cultureShared valuesPeople orientationTeam orientation

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Organizational Culture.cont Grow with the organization, sense of belonging, identify themselves with the organization, satisfied, and committed to organizational mission, vision, goals, and objectivesCharacteristics;Strong sense of purposeFocus on individual developmentRecognize the importance of people

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Organizational Culturecontd)Trust and opennesse) Employee empowermentf) Toleration of employee expressiong) Innovative and risk takingh) Attention to detail/precisioni) Outcome orientationj) Aggressiveness vs stability/status quo

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Recruitment and Compensation 65

Recruitment and Assessment ProcessRecruitment is the process of finding and attracting capable applicants to apply for employmentInternational in nature, various nationalities, e.g Filipinos, Africans, OECD countriesGrowing diversity/demographyRecruiters channels are among others walk-ins, write-ins, advertisements, private placement agencies, search firms, professional associationsInternational recruitment must be aware of national differences, recruitment practices, cultural differences, seafarers expectation 66

Recruitment and Assessment ProcesscontSteps; Human resource planning, affirmative action plans, specific request of managersJob opening identifiedJob analysis information/managers commentJob requirementIdentify methods of recruitmentSatisfactory recruits make formal application67

HR CompensationCompensation is what employee receive in exchange for their contribution to the organization.Managed correctly, it helps the organization achieves its objectives, and obtain, maintain, and retain a productive, and effective workforce.Objectives; Acquire competent qualified seafarers, retain current employees, ensure equity, rewards desired behavior such as loyalty, experience, performance, legal compliance

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HR CompensationcontIncludes not only salaries and wages, but also incentives and gain sharing, and other fringe benefitscompensation package.International shipping compensation package (Malaysia as an example) are salary, bonus, leave pay allowance, EPF and other contributions, joining and repatriation, victualing, bonded, medical benefit, health insurance, safety shoes and overalls, housing loan interest subsidy.

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HR CompensationcontGlobal challenges/talents, compete for competent qualified seafarersCompetitive offer to acquire/retain talentGlobal pension schemeIntegration of HR planning with expatriate compensationAdding appropriate value to expatriate compensation packageManaging expatriate expectation

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THANK YOU71

1. ITF, ILO, STCW2. Organizational Structure a) Ashore b) Onboard the Vessel3. Roles and responsibilities of Master, Chief Engineer 72

Module ContentThe Principle of Human Resources in Shipping IndustryPerformance Appraisal in Shipping HR Introduction to Shipping Management TrainingTalent Management in Shipping IndustryHRM Shipping Recruitment and Selection in Shipping OrganizationTraining and Certification of Merchant SeamanOrganizational HR Psychology in Shipping Industry73