HR Planning and Workforce Management in Shipping Companies

1. Module 2.0 Recruitment and Selection in Shipping Organization Natherland Maritime Institute of Technology

2. Recruitment and selection are combined and called the employment functionin HR Department. • It is the process of finding, attracting and ends with hiring capable applicants for employment.

3. HR partnership and the role of HR planning in Shipping Organization i.e HR is a Strategic Partner

4. The Role of HR Planning -1 • HR Planning requires considerable time, personnel, and financial resources for short and long term plan • Plan to forecast/estimates its future needs and supply of staffs both onshore/on-board……global • Given an anticipated level of demand, planners try to estimate the availability of current workers to meet the increasing demand

5. The Role of HR Planning - 2 • Begins with an audit of present employees, possible replacements are identified • Internal shortage are resolved by seeking new employees in the external labour marker. Surpluses are reduced by attrition, layoff • Attrition - the process of reducing something's strength or effectiveness through sustained attack or pressure. • Layoff - Suspension or termination of employment (with or without notice) by the employer or management. It is not fault of the employees but due s lack of work, cash, or material. Permanent layoff is called redundancy

6. The Role of HR Planning - 3 Manpower planning is not done in isolation • HR Manning Department has to work and engage the Business Units such as Tanker, Bulk, Liner/Container , and Fleet Management on their current and future manpower needs in line with organizational business plans and strategy, goal and objectives, mission and vision. It encompasses not only the seafarers but also the organizational shore staffs, and management teams.

7. The Role of HR Planning- 4 Managing the workforce in a shipping companies is very challenging – Why? Seafarers/shipping workforce is DYNAMIC • It is global in nature, global requirement (IMO, ILO) with regards to human and cargo security, safety, and environment • International Jurisdiction, Maritime Law • It is about managing various cultures, values, customs and religions of various nationalities of seafarers • It is about managing seafarers expectations

8. The Role of HR Planning…cont Crew manning challenges • Right people for the right ship are rare • Competition with other related industries/onshore especially O&G, • Awareness on career at sea • Seafaring as full time career • High attrition rate/Lack of berthing for training • Criminalization of seafarers • Inconsistent global legislation with regards to incidents/accidents

9. The Role of HR Planning…cont Planning and Managing the workforce entails • To support of regular intake of cadets and ratings as trained seafarers • Promotion of seafaring as a challenging/fulfilling profession • Giving top priority to health, safety and environment • Manpower career development/path to attract the best brain in the maritime industry • Training, motivation, coaching, retaining the workforce Therefore the role of HR planning is critical, not only getting the right people with the right qualification and competencies but also about training and development, grooming, motivation, coaching, retaining the workforce.

10. UNDERSTANDING JOB DESCRIPTION, ANALYSIS, AND SPECIFICATION

11. Job Description • Or JD is a list that a person might use for general tasks, or functions, and responsibilities of a position. • It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, and a salary range.

12. Job Analysis • is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. • Job Analysis is a process where judgements are made about data collected on a job.

13. Job Specification • is a statement of the essential components of a job class including: - a summary of the work to be performed, - primary duties and responsibilities, - the minimum qualifications and requirements necessary to perform the essential functions of the job.

14. Job Description • Job is a pattern of tasks and duties, and responsibilities that can be done by an employee. • Job analysis is a study of these patterns of activity to determine the tasks, duties, and responsibilities needed for each job. • Job description is a written statement that explain the duties, working conditions, and other aspects of a specified job. • Job specification describes the job demands on the employees who do it, and the human skills that are required (experience, ability to meet physical and mental demand, cultural familiarity etc) • All focus on the JOB.

15. Job Description…cont • Job specifications may include specific tools, actions, experience, education, competencies, and training requirement that clarify individual requirements for successful job performance. • Both functional and behavioral competencies stated • Working condition/demand faced by employees can have significant implications for job holders especially seafarers. • For example…deal with unfavorable weather/against deal with storms, high seas, and tsunami.

16. Importance of Job Analysis Information • Evaluate how environmental changes affect individual job. • Plan for future human resource requirement • Match job applicants with job opening • Determine training needs for new and experience employees • Create plans to develop employee potential • Set realistic performance standard…..STAR • Place employees in jobs that use their skills effectively • Compensate jobholders fairly

17. JobDesign/Analysis • Therefore job design, job analysis is important • Information gathering about the job to be analyzed through job analysis questionnaires, interviews, panel of experts, and observation. • Questions about the purpose of the job, duties performed, the way they are performed, human characteristics, and working conditions, areas of responsibility, decision making, controlling, organizing, planning • Job summaries and duties entailed action expected, tasks and activities identified, performance emphasized, and responsibilities stated.

18. Job Performance Standard • JPS serves two functions: • Firstly, they become targets for employee efforts. The challenge of or pride in meeting objectives may motivate employees. Once achieved, there is a sense of accomplishment and achievement The outcome contributes to employee satisfaction. • Secondly, standards are criteria against which job success is measured. Acts as a control system. • The four (4) features of control are 1) standard, 2) measure, 3) correction, and 4) feedback

19. Master Responsibility • Owner’s personal representative • Bears ultimate responsibilities for safe navigation, efficient loading, stowage and discharge. • Has the power to act as doctor, lawyer and bury the dead • May arrest member of the crew if they are nuisance • Has power to call people on board to render assistance. • Responsible for transacting the business of the ship in ports abroad. • Acts done within the scope of authority are binding on the owners

20. IDENTIFYING AND SCOUTING SHIPPING TALENTS

21. Identify and Recognize top shipping talent, Care for the Mind, Emotion, Physical, and Spiritual

22. What is Talent • Talent means the skill that someone has quite naturally to do something that is hard. • Someone who has talent is able to do something without trying hard. • It is an ability that someone is born with. It is a high degree of ability or of aptitudes.

23. Talent Management • is a set of integrated organizational HR processes designed to attract, develop, motivate, and retain productive, engaged employees. • The goal of talent management is to create a high-performance, sustainable organization that meets its strategic and operational goals and objectives.

24. Who Identify the talents Identified by their management’s assessment of their performance and potential for advancement. Typically people at the top two levels of the organization and high potential employees one level below. • Through the process of Performance Appraisal, potential talents identified. • Head hunters, and employment/recruitment agencies, advertisement • Professional bodies such as CILT, CIS… • Student scouting/internship

25. Shipping Talent Pool 1 For each person on the radar screen/identified, primary development needs are identified focusing on what they need in order to be ready for the next level. 2. Onboarding….. Orientation/socialisation (overview/ability to demonstrate co’s values, employee profile directory, mentor/maintee, managers’ guide, 3. Talent Development…. Job shadowing, comprehensive development/learning plan, extra-mile incentives, varied work assignments 4. Managing performance….. Career monitoring, continuous appraisals, observation, KPI, 360 degree feedback

26. Shipping Talent Pool 5. Planning for succession….. Talent gap review, executive project plans, mentorship to develop leadership skills, sense of value, loyalty, desire to stay/remain 6. Talent retention… thought leadership, cultural awareness guide, corporate knowledge transfer, corporate compass session, organizational health survey

27. Generation of Development Plans • Once YOU have identify the talents, how you develop them? • A development plan is prepared for how we will help the person develop over the next year.

28. Developing and Redeployment of High Performer

29. Tools Employed • Human Resource Information System (HRIS) - is basically an intersection of human resources and information technology through HR software. This allows HR activities and processes to occur electronically. • Leadership Competency Assessment • Management Review • Periodic Appraisal • “360” Appraisal - is a type of employee performance review in which subordinates, co-workers, and managers all anonymously rate the employee. This information is then incorporated into that person's performance review. • Learners’ Profile Questionnaires - http://myuea.org/sites/utahedu/Uploads/files/Members/Events/Convention2014/Handouts/Potts_Differentiation.pdf • Third Party Assessment

30. Accelerated Development

31. The meaning of accelerated is that such development takes place at a pace that is significantly higher than that of traditional development that allows an individual to learn the intricacies of the current job, observe incumbents in a higher level position (usually, one level up), practice elements of the boss' job when being delegated tasks, undergoing formal training, or benefiting from the knowledge accumulated by others and codified in the knowledge management systems. • Accelerated development means, contrary to the usual, more than traditional developmental path, bypassing traditionally expected career steps, stretched over a longer period of time learning opportunities, and/or age-related developmental progression. • Accelerated development is a necessity for organization of qualified individuals in the internal or external labor markets, and significant pressures from other organizations that are ready to poach talented executives and employees and offer them even higher levels of responsibility and remuneration.

32. Organizations also respond with accelerated development initiatives to the individuals engaged in career entrepreneurship, i.e., those who make alternative career investments in order to enjoy quicker returns in terms of career growth and progression. • Discusses the challenges of accelerated development programs, such as not only learning the competencies required in the new position, but also developing a new identity. • The process of going through an accelerated development program and identifies its important elements: • - pre-entry experience, • - initial surprise of getting into the accelerated program's environment and learning to use it, • - engaging in identity exploration through examining past and present identities, • - staging identity experiments, and, • - finally, stepping out of the program into the real world.

33. DEVELOPMENT OF ASIAN SHIPPING LABOUR MARKET

34. As a result of the increase in the size of the world's fleet and especially the Asian fleets, there has been strong growth in demand for seafarers world-wide. • South and South-East Asia constitute the largest supply region accounting for a total of 81.2 per cent of the total supply of officers. • South Asia represent the next most important source of officers with a contribution of 10.5 per cent of which India alone accounts for nearly 70 per cent.

35. As for ratings, the two areas are still the dominant supply sources. Together they account for a combined total of 72.1 per cent of the world total, with South and West Asia contributing 12.4 and 14.2 per cent, respectively to the total supply of ratings. • Again, India was the main supplier accounting for 57.4 per cent to the total ratings supplied from South Asia. • In West Asia, it was Turkey, straddling Asia and Europe, that accounted for just over 98 per cent of the total supplied from the area.

36. On the demand side, East Asia accounted for more than half of the ratings employed while South-east Asia employed about a quarter of the total ratings employed in the Asia-Pacific region. • In terms of surplus seafarers available for foreign employment, the largest surpluses came from South-east Asia with the Philippines accounting for 90.7 and 81.7 per cent of officers and ratings, respectively. • Indonesia was the next most important supplier of ratings accounting for 11.2 and 12.0 per cent, respectively, of the total surplus from South-east Asia

37. Asian Shipping Labour Market • However, the larger picture is still one of severe shortage of seafarers due to continued expansion of the world's fleet and a higher than world-average growth in Asian fleets. • The question is whether Asian supply countries are able to meet the challenge of raising the level of training capacity without compromising on quality. • The Philippines has been facing increasing difficulty in meeting demand from the International shipping community for many categories of seafarers.

38. Asian Shipping Labour Market • Asian seafarers, particularly officers, deployed on foreign-going ships provide opportunities for them to acquire sound knowledge of the operation and management of shipping. • Thus, countries with a stock of experience and well trained maritime personnel, together with well-established maritime training institutions provide a strong foundation for the maritime industry in their home states. • This may have been the experience of such countries as South Korea, Taiwan, India as well as Hong Kong and Singapore.

39. Asian Shipping Labour Market • Over time, major supply countries have developed into centres for ship management and crewing, example of which is Manila. • Other major centresfor recruiting seafarers for overseas employment are Hong Kong and Singapore • The dynamics of the supply of maritime manpower from a number of the Asian countriesto international shipping is in response to the decline of seafaring in western maritime nations and action taken by countries with abundance of low-cost labourmeeting the demand so generated.

40. Asian Shipping Labour Market • Philippines close links with the Americans and familiarity with western custom as well as the facility of the English language of most Filipinos held the key to easy integration on ships with senior European officers. • Nations wishing to emulate the Philippines will find it more difficult without the benefit of knowledge of the English language • Philippine supply not less than 50% of global supply of seafarers

41. Asian Shipping Labour Market • In general, the good nature of Asians, their ability to learn skills quickly, and their positive work attitude render them highly employable. • Nevertheless there are factors such as colonial ties, inherited customs, natural affinity to the sea, and education/training institutions that play an important role in the employability of certain Asian nationalities in particular niches. • The Philippines has a particularly well-established system of recruitment and placement of their seafarers employed on foreign-owned vessels. • The Philippines Overseas Employment Agency (POEA) maintains a registry of skills for seafarersand promotes the development of skills for seafarers for foreign employment.

42. Asian Shipping Labour Market • The Maritime Industry Authority (MARINA) on the other hand is concerned with the need for trained seafarers for the domestic fleet. The POEA is responsible for the proper recruitment and placement of Filipino seafarers which are handled by private manning agencies licensed by the Agency. • The Seabed Tripartite Consultative Body comprising representatives from the government, private manning sector,Filipino shipowners, and seafarers' unions acts as an advisory body to the POEA. • The Agency formulates and enforces regulation relating to the registration of qualified seafarers, the accreditation of foreign shipowners, processing of employment contracts as well as licensing and monitoring of manning agencies. • Only POEA-registered seafarers are permitted to seek employment on board ocean-going vessels

43. INTRODUCTION TO CURRENT HUMAN FACTOR IN ASIA SHIPPING INDUSTRY

44. Human Element • Human element in International Shipping • It is not only about job but also about seafarers/ employees’ career development/career path . • Managing the aging seafarers and those leaving the industry • Managing the global seafarers requirement needs and expectations

45. It is the PEOPLE • It is about PEOPLE, and the human element in shipping is critical in managing and moving billions/trillions of assets and cargoes worldwide. • It is about PEOPLE, human capital as an asset managing company’s resources in meeting organizational mission, vision, goals and objectives. • It is about empowerment, motivation, commitment, do more than what is required, have a sense of belonging, and passion.

46. Human Element/Factor…cont • The shipping workforce is international in nature of various nationalities with different cultures, religions, and values. • It is about managing varied expectations, needs, and requirements. • Not only physicalneeds but also emotional, spiritual needs that need to be managed effectively for the benefit of the shipping organization. • Coaching is another critical areas as grooming of shipping personnel, be it onshore or onboardtakes a considerable period of time to reach a certain credible levels managing those sophisticated vessels and the capital intensive shipping organization.

47. Effective Communication * Effective communication is critical, between: - departments but also - between shore and onboard personnel for the seamless shipping operations.

48. Seafarers Strong Charact & Values Managing current and future challenges in the shipping industry with the various stringent international maritime laws and conventions is awesome and command a workforce with character and high values.

49. Pre-requisite Qualification for Shipping Industry and Career Development Structure

50. STCW • The International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (or STCW), 1978 sets qualification standards formasters, officers and watch personnel on seagoing merchant ships. • STCW was adopted in 1978 by conference at the International Maritime Organization (IMO) in London, and entered into force in 1984. • The Convention was significantly amended in 1995/2002/2012.