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4 MANNING OF MERCHANT VESSELS IN NORTHWEST EUROPE AND JAPAN ROOTS OF CHANGE In the late 1960s and early 1970s, the maritime nations of Northwest Europe embarked on a transition away from their traditional manning and organizational practices in ship operation. as a result of social and economic factors. The social activators for change were felt first, and were both demographic and cultural in nature. Serious maritime personnel short- ages appeared in the late 1960s and early 1970s throughout Northwest Europe and in Japan; firms found it difficult to attract and retain crews, particularly officers. The shortage led to several innovations in manning and operating practices, including automation of engine rooms, reorganization of billets, and integration of trade skills in ratings. Research efforts were undertaken in the United Kingdom, Norway, and other countries to find ways to enhance the quality of life at sea. Measures included such social innovations as permitting families to be on board. More practical was a movement toward permanent, contractual employment of seamen and an ef fort to encourage crew continuity through longer-term vessel assignment. The General Purpose (GP) ratings and semi-integrated (poly~ralent) off icer concepts were instituted in the early 1970s to reduce Inning requirements and the boredom of shipboard duties and, on the part of unions, to increase wages. The personnel shortage was a direct outgrowth of social changes including an increase in the level of education, the elevation of middle-class standards of living, and a further leveling of social classes and distinctions. These trends directed the work force away from the isolated life of the seafarer. They also had liberalizing and democratizing repercussions throughout industry. At sea, social and professional tear tied between officers and ratings began to d issolve. Another set of changes rooted in social trends is a shift toward decentralized or shipboard management. Management responsibilities for ship operations are being decentralized from shore to whip. Often 29

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30 shipboard management teams, usually consisting of ship's officers, have substantial authority including budgetary responsibility. A related development is the occasional use of consultative work planning groups onboard ship. In the mid-1970s, a worldwide recession brought about a sharp downturn in shipping, effectively ending an era of manpower shortage and forcing interest in improved operating efficiencies. In this economic climate, ship operating companies have focused more intently on cost-cutting measures. Flagging out. and crewing with nationals f ram low wage, developing nations has become a common practice. Companies are interested in reducing their crew complements, and have begun to examine ways to reduce the number of their shoreside person- nel. Aboard ship, automation and other advanced technologies as well as labor-saving innovations in design have been increasingly employed. Companies have supplanted worklife improvement experiments with efforts that will provide more immediate economic relief. Faced with the threat of flagging out,. unions in all the countries affected have cooperated we th shipping companies in these billet-cutting actions to preserve some jobs. The comparatively high cost of labor in the developed maritime nations has motivated innovations in operating practices as well as f lagging out. ~ As in any setting where high wages prevail, an ability to succeed in international competition requires that high hourly wage rates be more than of feet by high labor productivity. Wi th manning costs an important element of total operating costs, companies have been continually and increasingly interested in the cost-cutting potential of manning reduction. Direct labor costs represent a greater percentage of operating costs on smaller, rela- t ively low-cost ships. Shif ting into capital intensive shipping does not offer a general solution to high wages since specialized, capital- intensive ships account for only 20 to 30 percent of world transport activity. Industrial strategies f or counteracting high labor costs involve tradeoffs, for example, in technical features, maintenance, training, fringe benefits,.and accommodations. Less tangible costs attendant to organizational changes include costs of dealing with unions and shore organizations, for example. The mix of manpower numbers and skills, management structure and policies, and technology has to be evaluated in terms of overall costs versus income. This assessment by manage- ment is interactive and continuous and has characterized much of the European experimentation in ship manning.

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31 MANNING INNOVATIONS This section will review changes that have been experimented with and adopted in the f lee ts of Nor thwest Europe and Japan in the long-term effort to reduce manning costs. There changes encompass the design, technology, and equipment of vessels, the shoreside supper t organiza- tion, and corporate personnel policies. Changes in Vessel Design, Technology, and Equipment Unattended Engine mom The most basic level of engine-room automation consists of remote control of main propulsion machinery from the br idge, in con junction with remote sensing of operating conditions and alarm capability. These provisions eliminate the need for round-the-clock watchkeeping in engine spaces. With additional automation of engineer ing functions, 24-hour unattended operation is possible, and human intervention is no longer required except for the few remaining inspection and operation tasks. Maintenance and repair then constitute the bulk of engineer ing responsibilities. Automated engine rooms have proven to be quite reliable. A study of 300 ships operating with unattended engine rooms revealed that after an initial breaking-in period, alarms averaged 1 every 5 days and faults averaged 1 every 10 days, thus enabl ~ ng the vessels to operate with true unattended engine rooms. The highest level of eng ire-room automation is found in the Japanese Super-rationalized container ships. MOL'S CANBERRA MARU and the NICHIGU MARU of the NYR-MOL-YS consortium have integrated the engine and cargo control stations on the main deck remote from the engine spaces, while NYR's ARUBA MARU incorporates nearly all engine- room function" in the bridge. Both designs incorporate microprocessors which monitor and log over 300 operating parameters. The status of operations is displayed on printers or screens in a number of loca- tions, i.e., control station, bridge, and chief engineer's office. Malfunctions trigger alarms in var ious locations In the ship. The systems are interactive in that auxiliary equipment, such as generators or pumps, is controlled automatically. Central control of bunker ing has reduced the manpower necessary for that operation. Maintenance Vessel manning requirements have been reduced to a great extent by changes in maintenance. In the deck area, the use of epoxy paints and special coatings, which require less maintenance, has become common. it)

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32 Innovative maintenance approaches such as design-for-maintenance and planned-ma intenance systems have had an even mor e f undamental effect on shipboard Inning and organization, especially in the engine area. In the early stages of machinery plant design and equipment selection, considerable attention is given to equipment types and conf figurations which will minimize manpower requirements for main- tenance. Machinery is installed with adequate space for maintenance and parts removal, significantly reducing the time required for maintenance and repair . In selection, maintenance intervals and manpower requirements are considered in addition to life-cycle cost and owner's preference. Other practices calculated to reduce maintenance include: selection of main and auxiliary engines that require the smallest amount of ancillary operating equipment; the use of shaft-driven electric generators to reduce operating hours on diesel generator sets; totally enclosed elects ical equipment; sealed bear ings for all elects ic motors; the use of fresh water rather than salt water; and d diesel eng ines with the smallest number of cyl inder s pass ible . Automatic condition monitoring systems are becoming prevalent as ad juncts to planned maintenance systems . These monitor ing systems of ten permi t extended Tea intenance intervals and prov ide the advantag e that planned repairs may be made before they become cr itically neces- sary. Therefore they may be undertaken ashore or by a maintenance gang, and without delaying the ship. In general, much maintenance that cannot be accompl ished with in the normal wor kday and an accept- able range of overtime is reserved for shore gangs when the vessel is in port ~ in shipyard, or in coastwise transit. Bridge Manning level adjustments due to automation have not been so signif icant in the deck department as those proceeding from technical innovations in the engine room. Microprocessors have been incorporated into position-f inding and collision-avoidance devices, but for the most part these have augmented rather than supplanted traditional navigation practice. Moor ing and Anchor ing Mooring and anchoring manpower requirements remain the most resistant to reduction through technical innovation. Innovations have been pr incipally mechanical in nature, e.g ., self-stowing line baskets , constant tension winches, and smaller and lighter hawsers. Through careful design and placement of multiple, redundant line-handling equipment and communication and control stations, the Japanese have lessened the requirements of brute strength in the handling of lines and the s ize of the moor ing party .

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33 Cargo Operat ions Microprocessors have improved the safety and ef f iciency of cargo operations. These developments extend to loading, ballasting, and heel corrections (i.e., load calculators, hull stress monitors, and heel ing sensors ~ . The manpower necessary for deck operating tasks ~ i . e ., the opening and clos ing of hatches and secur ing of cargo} has been reduced through minimization of the number of hatch covers and their automation, and innovations in mechanical secur ing devices for containers. On tankers, cargo control systems permit central control of valves and pumps and provide tank level and f low rate indications, along with appropr late alarms . Communications Improved shipboard communications, including remote input devices, displays, and alarms, have been integral to a number of the innova- tions that have been descr ibed. Information exchange between crew members has been enhanced by greater use of telephones, public address systems, and paging systems . Crew communications dur ing deck opera- tions, such as moor ing where there are no free hands, have been improved in at least one instance by installing walkie-talkies in safety helmets. Satellite systems have made possible dependable, high quality voice, telex, and computer ship-to-shore communications. There recent communication advances have made mar iners ' direct communication with their families more colon, and has made it easier for senior officers to be involved in the bus iness as well as the technical aspects of ship operation. Satellite communication enables reversal of the trend toward centralized shoreside management of vessels begun 75 years ago with the introduction of marine radio by providing the ship with current budgetary, stores, and scheduling information from the head of f ice, and allowing for the timely transmits ion to the of f ice of s imilar information or iginating from the ship. Superstructure Design Just as technical innovations in working spaces have facilitated crew reductions, so too has the design of living and off ice areas. The overall quality of accommodations (i.e., space, privacy, comfort, entertainment, and diversions) has improved steadily, reflecting industry's presumption that, in spite of fluctuations in the market for seagoing labor, the expectations of seamen will continue to rise in parallel with improving living standards ashore. Perhaps more significant than increased comfort through greater space per crew member at the same building cost is the varied environment

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34 that ship designer s have sought to provide in new ships to promote interaction of crew members. The superstructure layout of a vessel designed for operation by a smaller crew provides greater segregation of working, recreation, and private areas--as is the case ashore. Crew cabins are located in the most remote sections of the super- structure, while food service, lounge, and recreation spaces are reserved for the intermediate decks. The ship's office, archives, conference room, and stores are found on or near the main deck. More attention is being paid to the provision of a good social environment. The integration of officers and ratings becomes more desirable with the elimination of billets. Integrated lounges, mess rooms, and recreational facilities offer a much-needed opportunity for social contact. Traff to flow within passageways of the reduced-manning vessel' s superstructure is designed to promote encounters between crew members by reducing the number of ladders and locating recreational and other communal spaces centrally. In at least one case, private cabins have been made only moderately attractive so as to encourage the occupants to join groups as often as possible. The underlying pr inciple of these innovations is that the quality of seafar ing lif e during off-hours can be much mproved by reducing loneliness and boredom, and that this improvement will yield gains in productivity, safety, and morale. Off ices have been placed in a central location, rather than the traditional location adjoining the staterooms of senior officers. All of these advantages encourage communication among of f icers dur ing working hours. At the same time, the segregation of office and living spaces allows the crew to spatially and emotionally separate themselves from their work when off duty. Central meeting rooms also have been provided. In this arrangement, the shipboard management team works together in one office; there is central storage of data; and work planning may be facilitated by central display of tasks to be accomplished and progress made. Changes in the Organization of Crews Intradepar tmental Flexibility Perhaps the simplest manning reductions from an organizational perspective are those which are achieved through elimination of certain billets, accompanied by intradepar~cmental adjustments to the contents of others. Engineering automation has made possible this kind of manning adjustment. Engine room watchstanding billets have been eliminated. Th is instantaneous reduction, so closely related to

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35 specif ic technical innovations, also has been made possible by the combination of previously separate and distinct responsibili ties into single job descriptions. Within the engine room, this recombination of tasks has taken the form of engineering officer/electricians and dayworking ratings, sometimes retitled mechanics, who are responsible for operations, maintenance, and repair work previously undertaken by oilers, wipers, greasers, donkeymen, and fitters. In the deck department, the number of dayworking ratings has been reduced as a consequence of less shipboard maintenance work, while watchstanding billets also have been reduced through the occasional combination of watch off icer and lookout duties. For deck off icers, the reduction has taken the form of chief mates returning to watch- standing and, more recently, some watchstanding by masters. This latter arrangement has been the sub ject of exper imentation on smaller vessels in Sweden, Denmark, Norway, and the United Kingdom. Salen ~ Sweden ~ is considering a half-time ~ 4-hour ~ watchstanding assignment for the masters of their supertankers. The West German st~ipowners have been asking for permission to sail up to 10,000 grt with a master and two deck officers, and the West German Ministry of Transport has recently drafted a regulation that will move the limit for such operations from 1,000 to 4,000 grt. Deck officer and master unions are uniformly opposed to watchstanding masters, citing as reasons the likelihood of fatigue and the probable reluctance of junior officers to call out a master who recently completed a watch. On the other hand, it has been stated that such an arrangement may reduce accidents by preventing masters from becoming weary during a long passage with little to do. Masters and deck officers have assumed radio communication responsibilities in the absence of a radio officer billet. As with the watchstanding master, this is being tried on smaller vessels and considered for application on larger vessels. Reductions in the catering department have been accomplished as a result of diminished hotel services and the smaller size of the total crew. Additionally, intradepartmental integration of tasks in this department has taken the form of chief stewards who also cook, second cooks who also bake, and steward utilitymen whose responsibilities now include all facets of the department's operation. Although come additional training may be required for the expansion of responsibilities within departments of certain billets, these initial manning reductions have not posed a serious challenge to the traditional organization of crews. Interdepartmental Flexibility Further reductions entail alterations in the traditional structure of shipboard work. The most rudimentary structural change, one that maintains for the most part the segregation of departments, is that of interdepartmental flexibility.

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36 On conventional general cargo ships, the departmental structure ~ i.e., deck, engine, and steward departments} functions relatively well. However, general cargo ships are being less and less frequently built; more technologically sophisticated, specialized vessels are taking the, r place. Changes in technology and trading patterns have greatly reduced the need for traditional cargo handling skills. The reduction of time in port brought about by developments in cargo tech- nology has substantially increased the time spent in basic navigational watchkeeping . Simultaneously, the need for end ineer ins sk ills has increased in all aspects of ship operation. Automation has also increased the demand for knowledge and sk ill in instrumentation and control systems. These changes have affected the officer ' s role at the same time as they have led to a reduction in the number of ratings. Task analyses of shipboard work have revealed that the workload intensity of the several departments often is not corresponding, and that r atings of one depar tment might be available and able to ass ist in the work of another . For example, engineer ing and galley personnel may assist in moor ing operation.. Such a system allows for further manning reduction. within the crew as a whole, while still meeting the peak manpower requirements of the individual departments. Unlicensed crew members retain their identity with a single department but are called upon to work occasionally on tasks in other departments. Occasional department crossover is widely accepted in Norway and West Germany, and in the United Kingdom was pioneered by e~erimenta- tion conducted in 1964 by the Br itish Shipping Federation, Cunard Line, and the National Union of Seamen. The Danish Seamen' s Union proscr ibes ~~~ ~ is a provision in the the practice for its members, although there Danish Firemen' s Union for working in alternate departments. Departmental Integration: General Purpose Ratings An even greater departure from the traditional structure of shipboard war k is the introduction of general purpose (GP} crew. In this organi- zation there is no departmental (deck or engined distinction between ratings who share operations, maintenance, and repair responsibilities . GP manning experimentation began in the late 1960s on tankers and bulk carriers. The roles of senior deck and engine ratings have been redef ined in con junction with GE exper Indentation. GE crews frequently are placed under the supervision Of a single Ships foreman" rather than under the traditional departmentalized billets of Bosh or ~storekeeper. ~ Some GP implementations in Europe have not been very successful. Experience has shown that ratings who participate in GE arrangements risk a loss of occupational identity, and, without training , are qualif fed to do only low-skilled tasks in the alternative department.

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37 The system works most satisfactorily in those crew structures which are designed to provide meaningful content in these jobs, and in those organizations that provide the necessary training . Furthermore, the system of general purpose ratings has been implemented most eff iciently where mar iners have not previously served in one department or another, but are trained initially for general purpose service. In spite of some disappointments with early GP exper iments, the more serious companies and countries are expending much effort and money to modify crew organizations and national training schemes to make GP work as it was intended. Since 1980, only GP ratings have been produced by the nautical training system of the Netherlands, and within 5 years, the only entry rating training available in West Germany will be for GP. The Norwegian training scheme has been turned toward GP, an evolution that has been accelerated as a result of the new 1983 manning scales that formally recognize the necessity of GPs for reduced manning operation. In the United Kingdom, 10 to 15 percent of ratings are sailing in a GP capacity. Department Integration: Semi-Integrated Officers A more recent innovation in crew flexibility is that of the dual-purpose or semi-~ntegrated of f icer . Still in the exper imental stage in several counts ies, the inter ~ ion is to license and employ off icers capable of standing na~riga Lion watches, monitor ing engine controls, - ~ - - ~ - repairs. and undertak ing mechanical, elects ical, and electronic The ob jective of semi-integrated off icer operation, beyond that of further manning reduction, in to redistribute the bridge watch- keeping and technical maintenance and repair functions among more off icers. The French were the first to train dual-purpose off icers . In the Dolabella experiment, the French nautical education system was modif fed to produce off icers equally expert in deck and engine skills . However, reportedly because of union opposition, few changes were made in the organization of shipboard work to make use of dual-purpose officers. The multiple-sk ill concept of reatr ix manning has been developed in Northwest Europe. It differs from the polyvalent or dual-purpose scheme in that the goal is not a homogeneous work force of seafarers holding identical billets. Rather, a mate ix crew is composed of individuals, each with ~ specific specialty and varying levels of competence in a secondary sk ill. These matr ices of sk ills cross departmental bounder ies--hence the flexibility--but still distinguish between areas of principal competence. This semi-integrated officer is one whose predominant training is in one department, with less background in the other. Officers graduate from nautical college with both entry level licenses, but are expected to maintain one at

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38 entry-level, while pursuing advancement in the other . In the pr mary specialization, the officer is responsible for all aspects of a part of the ship' s operation; his secondary expertise is relied upon by other specialists to provide assistance as needed. The basic purpose of the matr ix concept, with its provision of greater versatility in individuals, is to enable peak var Cations in workload to be dealt with by fewer officers. The Norweg fans tested the mate ix of f icer concept in the ear ly 1970s (Hoegh Multina) with success, but for political reasons the necessary educational reform to diffuse the innovation did not take place until 1978 . The Dutch turned their attention to semi-integrated officers at about the same time (Shell in 1978 and Nedlloyd in 1981}, and now have a number of experimental ships sailing under this system. (Shell has 65 semi-integrated officers--10 percent of their total. ~ The Dutch nautical colleges are designing a 4-year program for semi- integrated off icers . Both Shell and Nedlloyd hope to convince the colleges to provide only semi- integrated of f icers in the future . Shell has announced that in the f utur e th is will be the only type of off icer they will recruit from the colleges. In addition, the Japanese are exper imentinq with semi-`ntegrated off icers. Related to this concept of semi-integrated officers is another concept which might be labeled ~ semi~off icer . ~ The Japanese are the greatest proponents of this innovation, in which watchstanding certifi- cates are awarded to other than fully licensed officers. More than 500 Japanese ratings have now been awarded watchstanding certif icates after completing a 5-month training course. A similar proposal has been made to the UoR. Department of Transport by the General Council of Br itish Shipping (GCBS) . The GCBS had been advised by the Depart- ment of Transport that the government would prefer that they pursue a fully dual-licensed officer approach. One attraction of the ~semi~officer. approach is that it provides an intermediate billet for individuals moving up from rating to officer status. That transition is becoming more difficult as the educational standards of the nautical colleges are being raised. There is some concern that the educational tear rzer to mobility will work against efforts to break down the traditional tear r lets between off icers and ratings . Decentralization: Shipboard Management Teams A number of ship operators throughout Europe are transferr ing some management responsibilities front the head off ice to the ships to improve the job content of ships officers, to improve the effectiveness of the shipboard organization, and in some cases to permit reductions in the stat f of the shore suppor t organization. The management team consists of the master and department heads and occasionally junior

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39. off icers and senior ratings. In general, the shipboard management team has authority over operating expenses and budget, personnel, and maintenance. Although managers ashore may establish performance and profit objectives for the ship, the role of the shore office is rev tented toward supporting rather than directing the ships. For DENS (Denmark), Shipboard managements begins after the company selects a master for a ship under construction. The master assists in the selection of officers. This shipboard management team then plans jointly for the organization and operation of the new ship, including recommending a crew size. The company takes this proposed crew level to the Board of Trade for approval. Hoegh Line (Norway} sends its full shipboard management team and their families to the construction site where they have the responsibility to oversee construction and prepare the whip for operation. In operation, the shipboard management team may elect to undertake ma jor engine overhauls or maintenance tasks using the "hip' s own crew, or to hire shore gangs. Such teams are generally permitted to spend funds to a certain limit without consulting the head office, and to oversee shipyard repairs, rather than to depend on engineers from the home of f ice . Shell Tanker B.V. intends to employ a Ship manager. on every ship who will be assisted by five semi-~ntegrated officers. New constructions include in the accommodation layout an administration room which is a centrally located grouping of offices where the management team conducts its daily work. Shipboard management teams are the maritime expression of decentralizing, a trend throughout Northwest European industry to push management decision making to lower levels of organization. The underlying theory is that the best decisions are made by those individuals closest to the problem. In the case of ship operation, this generally means those on board the ship. Not only should this lead to better, economically sound dec is ions, but it is intended to produce greater job satisfaction on the part of local managers--which translates into improved retention, motivation, and overall per formance . Decentralization is facilitated by vessel ass ignment continuity of at least senior off iced. Many companies have adopted this for a dock-co-dock per iod. The exper fence of a number of companies reveals that shipboard management is eas ier to implement onboard than at the head of f ice . Off icers often are eager to take on added responsibilities while middle managers ashore typically are reluctant to release control. Thus, this change requires top management commitment and attention. If there has been any disappointment in shipboard management from the shipboard aide, it is that the involvement of junior officers and

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52 therefore about what practices should be promoted or required by industry-level action. The industry in the United Kingdom is com- pr ised of a large number of small- to moderate-s ized f irms with no large, dominating companies. As a result, the U. K. shipowners association has evidenced less leadership in manning innovations than i ts counterpar ts in other European counts ies . Complexity and diversity within the government is also a factor. Sweden has recently consolidated government responsibility for shipping matters in one agency. West Germany is moving in the same direction. Involvement of Participants Another major factor influencing the success of experiments as well as subsequent diffusion in the Northwest European ship manning exper i- ments was the degree to which direct participants, including the crew, were given an opportunity to discuss, review, and shape proposed or p ilot innovations . Norway' s Hoegh f irst learned the lesson when they omitted this seep in their initial efforts to transfer elements of an experiment to two other ships. They found that the crews on The nest ships did not have the commitment required to make the innovation world effectively. Hoegh concluded that participative planning is art essential step in organizational change. A further implication of this decision for Hoogh is that innovations need to be tailored to the conditions on each sh ip . A related lesson was learned by Sweden' s Salen. In the mid-1970s, top management approved a trial in which increased shipboard manage- ment was delegated to off icers on four ships. When the results proved encouraging, management made the change a policy and attempted to implement it throughout the company's fleet of several dozen ships. They encountered difficulties. The officers for the experimental ships had been carefully selected and the personnel onshore who served as liaisons for the exper imental ships had been carefully br iefed and involved in the planning. However, the company' s program for imple- meeting the change company-wide overlooked the importance of these two aspects of the experiment. The company found that many officers in the additional ships targeted for change were either reluctant or unprepared to take on the additional responsibility, and many of the shore personnel were unwilling to transfer authority because to do so would threaten their current role. From this failure in dif fusion, Salen management learned that careful preparation is required to lay the groundwork for diffusion of organizational innovation. They concluded that preparation must encompass participative planning by all affected groups to achieve acceptance, education and training for the new roles, and compliance mechanisms to ensure that individuals carry out their new responsibil- ities.

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53 Adequate Information and Evaluation There has been a general tendency in the diffusion of organizational innovations for followers to oversimplify. The methods by which new manning innovations were developed, approved, and monitored influenced the type of changes that were copied, if they were copied at all. This can be illustrated by reviewing the Brostrom case. The Brostro~ manning innovations, which have been extended to seven Ro-Ro ships over the past several years, have the following well-publicized aspects: a 16-man crew, 6 general purpose crew members, and an operational strategy which transfers almost all maintenance to shc~re-based facilities. It is regarded as successful, safe, cost effective, and satisfactory to crew members. When other Swedish managers and government and union officials consider the gener ~ applicability of the approach, they especially focus on whether in is practical for other shipping companies to transfer maintenance functions to shore-based crews. These officials, however, may be missing important lessons from Brostroms' experience. When examining less `'ublicized aspects of the Brostroms model and when one listening close ~ to what Brostroms' management itself considers to be the basis for i ~ s success, a more complex picture can be sketched. The company negotiated the manning innovation initially with their unions and madly them partners in the monitoring and evaluation of their early experiences. Crew members, who were required to be experienced, were recruited from among volunteers. There was a con- scientious commitment -a give more voice to crew members and to be more responsive to the. r stated needs. There was greater provision made for role flexibi;: ty between ratings and officers and for includ- ing ran ings in the wor k planning. The manager with line responsibility for these ships emphasized that a major factor in the success of the innovation was motivate-], spirited crew. This aspect of the success of the innovation is n i well appreciated by observers, nor is there an information diffusion mechanism in Sweden which could help other ship operators understand the many ingredients for success that were built into the Brostrom' s approach. There are other il' ustrations of this tendency to fix on an aspect of an innovation, usually its most controversial aspect, while ne- glecting the key ingred ents of its success. When in the late 1970s the Sealife Programme in the United Kingdom attempted to duplicate the Norwegian manning experiments, the intention was to test several concepts: general purpose crew, continuity of assignment, and crew participation. As it happened, the U.K. officers, ratings, their unions, and many managers were hindered by the question of social integration. A better g: asp of the Norwegian experience might have

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54 enabled the participants to see that it is more ap ~ropriate to treat social integration as a by-product of work role in egration, rather than as a precondition for other changes or as the central element of the planned change. Technology Transfer Each industry has, as a rule, insisted upon conducting its own research and trials rather than directly applying the experiences of other countries. For example, the Sealife Programme in the United Kingdom explicitly set out to reproduce the Norwegian experiments on O.K. ships with U.K. personnel.. Even within the Netherlands, Shell experiments were not regarded by the rest of the industry as a basis f or evaluating the GP concept or the semi-integrated officer. This repetition served several purposes. :t provided a common experience which all of the affected parties could evaluate. It provided a concrete basis f or all of the parties to learn about the detailed requirements of the change process. The planning and evalu- ation discussions among parties provided an opportunity for them to develop a more systematic understanding of the innovations, including their key ingredients and subtle effects. The_e discussions, like other instances of participative planning, developed ownership and commitment. Much of the reporting on effective manning developments has been descriptive. There has been little assessment of the innovations, their strengths and weaknesses, and advantages or disadvantages. Once several different companies were experimenting in Europe, the possibility existed for them to interact and influence one another. The rate of diffusion of change and the quality of the specific models which evolved were enhanced as networks were created in which partici- pants in these innovations could meet and exchange their experiences. Some networks have been formalized, such as the companies participating in the Sealife Programme Ignited Kingdom), ;.ae Ship of the Fu~cure Program ~ West Germany ), the Committee on Modernization of the Japanese Seafaring System, Provo ~ Netherlands), and the Ship Operation of the Future Pr ogram ~ Norway ~ . Others consist of inf ormal exchange among those companies that have an interest in the subject. Examples of informal networks include the 1980s Group (alumni of the Sealife Programmed, the proposed Advanced Manning Croup of the General Council of British Shipping, and similar but nameless networks in other European shipowner associations. Compared to other industries worldwide, ship operators in Northwest Europe and Japan have devoted a remarkably large amount of effort to learning about organizational Innovation. Also impressive is the very high quality of both the research and policy implications

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~5 drawn from the research efforts. Most of this social science research has focused heavily, but not exclusively, on the Norwegian and BE itish exper fences--but it has had broad relevance to all of the counts ies studied. Moreover, the conferences explor ing organizational innova- tions in ship operation often have been broadly international in their content and in their participant roster. The many trade journals and magazines which track developments in the international ship operating industry have- reported frequently, and sometimes in depth, on the status of and trends in manning policies and practices. Importance of Training Training has played an important role in the process of change. Most innovations have entailed training of participants in technical sk ills related to expanded responsibilities and also in participative organi- zational change. A number of countries have revised rating and officer training schemes to support manning innovations in the national fleets. Norway has expanded its Ship ' s mechanic. training program to f ill the demand for such ratings. West Germany has modified its national train- ing program for ratings to the extent that the only entry training available is for GPs. Japan has revised its national training and certification scheme for officers to bring it into accord with the International Convention on the Standards of Training, Certification, and Watchkeeping for Seafarers, and also to support the trend toward semi-integrated officers and certified nonofficer bridge watchstanders. The most substantial changes in training have been those for ratings because manning innovations affe<:`c ratings more than officers; a reduc- tion in the number of crew members leads to an increase in required skills and qualifications. In addition to changes in national training programs and requirements, companies have initiated programs to meet specialized needs. This company training is provided to recruits emerging from the training schools as well as to upgrade employees for innovative service. The scope of company training depends on the scope of the company' s manning innovations. Nedlloyd in Holland started an experimental program with two project ships in 1978 using the Multi-purpose Crew concept. They provided 5 days of special training in f iref ighting, safety, f irnt aid, and lifeboat certif ication; 3 weeks of shoreside training; and 2 months of on-the-job shipside training in the opposite department. Other examples of companies engaging in similar exper imentation and training efforts are Mapag-Lloyd in West Germany (3 weeks of shore~ide and 3 weeks of ship~ide training); Hamburg Sud in conjunction with other Went German companies; P.A.L. in the United Kingdom with shoreside schools to improve ratings' skills; and Leif Bough in Norway with structured training programs for GPs onboard the ship. Dual competency has brought about major changes in officer training schemes. Dual competency is now a hir ing requirement in Shell Tankers Big., with pressure being brought on the Dutch govern- ment to make such training mandatory in the nautical college. The

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56 system offers the ~minor. competence through an additional 6 months of college and 6 months at sea in the opposite department. The goal is to design a dual-purpose off icer education program of 4 years. For the future, a fully integrated officer training system is envisioned. In West Germany, the new system of officer training consists of 13 years of compulsory schooling, 18 months on ship, then 3 years of theoretical work at a polytechnic school. Attempts on the part of West German shipowners to have a semi-integrated educational program implemented have not gained approval by the government, but there is mounting pressure to include special provisions for such manning in manning regulations under consideration. Semi-integrated officer experimentation undertaken by Leif Hoegh in Norway several years ago was allegedly highly successful, but failure to gain support in the educational system made it impossible for the company to sustain the arrangement. Given the importance of leadership to successf ul innovation, some training has been directed to the development of leadership skills, and understanding of participative organizations, among those involved. Off icers have received training in management and meeting techniques, so as to be more competent in handling situations resulting f ram the implementation of shipboard management/matr ix organizations . Shoreside of f ice staff members have been given training in communica- tion appropriate to their roles as teachers of skills to be transferred f rom shore to ship. While these additional training components may not seem very significant in and of themselves, they signal a new emphasis on cooperation and a move towards decentralization and a self-contained ship. Government and Union Rules and the Process of Change Some manning innovations in Northwest Europe have contravened laws or regulations. Some experiments and trials have required variances from requ i remeet s . Where exper iments have been successf ul, laws or regula- tions have had to be modified to enable the innovation's diffusion in the industry. The two types of laws or regulat ions that bear most directly on manning innovations are manning scales that specify numbers and qualif ications of seafarers for specif ic tonnage and power vessels, and work environment laws which specify maximum numbers of hour s of allowable war k. The pattern throughout Europe and Japan has been to move away f ram legislated manning scaler in ache direction of regulations which can more easily be modif fed and interpreted for special circumstances. In some cases, industry advisory bodies have ass isted government agencies in consider ing requests f ram operator s to crew at levels less than that prescribed by law. Japan has gone so far as to remove manning from the realm of legislation and now relies upon regulation for guidance, which provides the legal elasticity to exper iment .

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57 For years, Norway had a means of providing for regulatory variance f or exper imental vessels In 19 83, a new manning scale law was passed that permits considerably smaller crews. The size of the crew is determined by the technological standard of the ship and the type of organizational innovations implemented. Just as variances from government rules have been needed for manning innovation, variances from union rules have also been needed prior to manning experimentation. In the United Kingdom, there has been a trend in the direction of individual companies negotiating separate contracts with the unions whenever they want provisions unlike those specified in the national agreement. The West German 18-man Containership Experiment operated under the provisions of an agreement signed by both the German Shipowners' Association and the two unions. A number of companies and most unions were signatories to similar agreements in Norway. Two of the more difficult issues attendant to manning innovation are watchstanding of captains and the requirements for a radio officer. The radio officer requirement is increasingly being viewed as obsolete because of substant ial advances in communications and navigation; although it is provided for in international law. In the countries reviewed, resolution of these issues has or will involve statutory changes. Compensating Workers for Their Participation Compensation has been provided throughout Europe and Japan because some manning changes can have negative consequences for mariners and their unions. In Norway, an industry-labor agreement provided for permanent employment, fixed annual salaries, and more vacation time. In West Germany, the 18-Han Containership Experiment also provided for continuous employment, additional holidays, guaranteed overtime, and other fringe benefits. Throughout Europe it is understood that one compensation to the ratings for shouldering the brunt of billet reductions is improvement in the status of those that remain. Unions representing the ratings have attempted to incorporate within manning experiments provisions for better training, facilities, and social status for their members. The All Japanese Seamen's Union, which has cooperated in the national program to restructure merchant crews, has revised its views on wage policy as a result of the increasing unemployment and radical changes envisaged for the seafaring career. The union is now attempt- ing to obtain a new pay and benefits structure that would provide lifetime security to the seafarer and his dependents. The union is also pushing for a selective retirement formula to promote the early retirement of an aging work force. With a usual retirement age of S5,

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58 the Japanese seafaring work force has a high proportion of individuals in the 40 to 54 age bracket. As in the United States, the ratio of reserve to active seamen In Japan has risen dramatically. The number of reserve seamen decreases at a far slower rate than the number of billets eliminated through crew reductions. Thus, savings through elimination of active shipboard positions is insuf f icient. Early retirements may alleviate the unemployment problem. Another means of alleviating unemployment among seafarers has been retraining for other than seagoing careers. The Japanese have been most active in this regard, both through the efforts of in.di~ridual companies and the government. NYK runs a job development program which assists in f inding NYK seafarers jobs ashore with aff iliate companies (e.g., steel and shipbuilding). K Line and Mitsui have similar schemes, and on a broad basis the Japanese Ministry of Transport established in 19 7 8 a Seamen ' s Employment Promotion Centre. These voluntary programs are assisted by the fact that these shipping companies are a part of larger industrial groupings. RESULTS OF MANNING INNOVATIONS Reflecting those historical conditions of the industry which led to effective manning programs, evaluation of innovations has focused primarily on the economy of vessel operation and the degree to which changes have improved the quality of working life. The effect of manning reductions and modif ication of traditional work practices on sat ety and health also has been an area of concern. Economy of Vessel Operation While earliest change efforts were concerned with providing a remedy to the manpower shortage problem, and were directed toward improving the quality of work life an sea, economy of operation always has been a measure of the success of effective manning projects. Cost reduction has become increasingly important in recent years due to overtonnaging and severe competition. Savings in direct payroll costs as the result of billet reductions has been the primary ob jective of a number of European and Japanese ship operators. These operators have introduced organizational or working practice changes only for the purpose of supporting the primary objective of manning reduction. Problematic in these cases is the degree to which direct payroll savings are offset by other costs associated with manning reductions (e.g., additional overtime for remaining crew members, additional training for remaining crew members, expanded shoreside maintenance, and declining resale value of the vessel, especially if it has not been maintained as before).

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59 The degree to which individual companies have monitored the costs and benefits of effective tanning projects has varied. There are no figures available for the industry as a whole, or for any national fleet. The Norwegian Ship)wners' Association, in a review of that country's experience with ffective manning experiments, flatly states: nit is not possibl' :o estimate the cost that has been incurred in the new equipment, additional training, or savings made.. A number of companies, including DFDS, Bough, and Shell Tankers Bail., have made comparisons of developments over time. Whereas costs on conventionally manned ships rose steadily over a couple of years, the costs on project ships rose much less sharply. The results were encouraging both in terms of operational performance and maintenance costs. Operators engaged in effective manning programs claim that reduced and reorganized crews operate project vessels not only without increasing operational costs ~ n areas other than payroll, but in a fashion that has reduced these costs as well. In other words, effectively manned vessels are not only earring payroll costs, but are providing savings in such area" as fuel economy, economy of equipment and stores, less days of f-hire, and less illness and accident claims. Quality of Working Life and Job Satisfaction During the era of manpower shortage, the companies were insistent that changes in operating practices should result in the seafarers being more satisfied with their employment and consequently remain at sea. With the shift of emphasis to economy of operation, the social goals or quality of work-life goals have not been lost. Operators still voice the concern that the quality of work life resulting from effective manning changes be a positive improvement rather than simply knot degrading. as manning level-, are reduced and economic working practices introduced. The most effective innovations are felt to be those that simultaneously increase productivity and improve working conditions {e.g., decentralized collision making, participative work planning, assignment continuity, higher levels of training, competetence, and responsibility}. It is widely reported that seafarers employed under effective manning arrangements en joy a subst antially improved quality of work life, and are not inclined to reve: t to traditional employment and working practices.

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60 Bibby Bros . reports of their pro je At ships that: Management inspections of the sh ips reveal h igher levels of achievement in the: ~.ntenance and appearance of the ships and also indicate improved management and morale on board. . . In short, bc th the teams themselves, and company management, think that they have a much better Or ip on affairs and greater satisfaction in their work. In essence, we would see the main benef it from these developments as be ing a much unproved trust and collaboration between shore and ship management. There has been a marked departure from traditional attitudes and a lessening of unproductive conflict. Issues are still confronted, but in a more constructive and less status-conscious manner. Tte organization as a whole is displaying a greater continuity and coherence of purpose and effort.. (Smith, Gosden, and Elkington, nd.) The Norwegian Shipowners' Association reports that ship~to-shore relationships have been remarkably improved, and that barriers between officers and: stings and between departments have been broken down, And are in some ships almost nonexistent. Furthermore, the crew works as a much closer team than before. Safety and Health Concern about safety and health in manning projects has generally taken the form of precautions that they not deteriorate. Dif ferent parties have had dif ferent safety and health concerns in overseas manning exper iments. The ministr ies of transport and their industry advisory committees have, in reviewing requests from operators for permission to sail with smaller crews than provided for by law, considered the possible vessel safety implications of proposed changes. In same cases, these agencies and advisory groups have played a further role in monitoring the performance of vessels granted such variance and operating with reduced crews. In countries with work environment laws {e.g., Norway and West Germany), agencies with this respon- sibility have monitored the hourly work records of experimental ships. Operators and shipowner associations generally claim that effective manning vessels are not only as safe as traditionally manned ships, but have resulted in better safety records because the smaller, higher trained ~ be ~ ter motivated crew is more aler t and attentive to duties. Some of these operators claim to have quantif fed these safety gains.

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61 Those union leaders that are cautious with regard to the new crew structures argue that quantity, in terms of numbers of crew, is important in addition to quality, and that expanding the responsibilities of ratings and officers beyond traditional duties is resulting in seamen less qualified in their principal departments. Although they have no data to support their claim that these ships may be less safe than those traditionally . manned, one union observed that it is the most modern well- equipped vessels that are being crewed in the new fashion. Arguing that such high-~echnology vessels should be safer than older ships simply from a technical point of view, this union maintains that effective manning vessels should therefore be required to show safety gains, and not just the absence of safety slippage. Additional Comments on Measurements of Results Characteristic of company-level efforts in organizational change in any industry, the results of such projects in shipping are not well documented. If projects are reported at all, and many are not, the reports frequently take the form of descriptive case studies. Few change programs are conducted in a scientific fashion. There are several reasons for this. Companies are interested in results, not scientific documentation. They are not motivated to increase the cost of the project. Another reason is that formalization or manning projects in a scientific mode can reduce the enthusiasm of participants, and therefore the likelihood of successful changes. Finally, the active participa- tion of evaluators--managers, union representatives, and seafarers --in experimental manning projects has provided experiential proof of results which has been sufficient for corporate purposes.

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