INTRODUCTION page 1

Aims and Objectives:

The main purpose of this study is to research, survey, analyze and provide such in-depth
material that will help forward thinking pragmatic managers to start tackling their employee
retention ‘ problems ’ in a creative and more efficient manner, thus reducing, if not totally
erasing, the turn-over rate which has become a global disaster in Marine Industry. I am basically
aiming towards setting out in helping and finding answers to three straight forward questions:

• Why do people choose to leave organizations?

• Why does this matter?
• What can be done to reduce its occurrence?

In completing this study I will try my level best to write in an engaging and readable style so that
the readers of this study will be forced to read further to find the desirable solution to their own
organizational dilemma which they have been and are still facing. I have also set out to provoke
the readers into questioning, some of my ideas and assumptions, in a rather starker manner.
Moreover I have also drawn extensively on my experience working as a Master Mariner on
board various and many ships belonging to different countries having diversified crew members
with different ethnical, cultural, racial, religious and linguistic back grounds, adding to my
insight to help me draw conclusions on the global problem. Later while working as Operations
Manager, Commercial Manager, Chartering Manager and operating my own Manning agency
has helped a lot in seeing some of the latent problems which had never been given serious
thoughts as being a problem at all. I saw many mistakes been made, as well as few examples of
sustained success. I have also drawn on anecdotal evidence gleaned from conversations with
friends, colleagues, subordinates, crew members, officers, managers and ship owners as a
research fellow. The result, I hope, is a study which contains highly workable suggestions on
how to improve an organization’s employee turn over record over the long run.

Research Questions:

The research questions are aimed into three dimensions to this problem. There are three major
players who participate equally and thus have almost equal weight in resolving and/or creating
problems in the marine industry. They are Managers, Officers and Crew. Managers who are
sitting in offices ashore and managing and controlling ships operations on macro level whereas
the officers staying onboard ships carryout the smooth operations, under the watchful eyes of
management, on micro level and the ships crew and ratings thus help and do all the manual jobs
necessary to keep the ship running, as desired.

The questionnaire will be so designed to direct questions to these three cadres according to their
responsibility level, problem awareness and its solution. The questions are kept in a very simple
YES / NO format (Dichotomous style) asking simple and direct questions having clear cut
replies guiding towards specific area and focal point in the mind of the researcher.
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Hypothesis:

A theory is developed on the basis of apparent problem and on the assumption of this theory, a
suggestion or hypothesis is formed with various variables playing its part in this development.
The hypothesis is basically an idea on the ground, in the form of a question mark asked to own-
self that whether this is the cause of the problem being faced.

There are 4 main variables taken into consideration and many other sub variables used in the
hypothesis which are shown as under; These variables make the basis of our study and
consequential research to find a positive and/or negative relationship between the variables. Each
and every problem has many variables influencing and affecting its intensity and showing
various factors leading towards the root cause of the problem at hand. These variables are:

1. Independent Variable
2. Dependent Variable
3. Moderating Variable
4. Controlling Variable
5. Sub Variables to above

HYPOTHESIS :

H1 : EMPLOYEE RETENTION IS DIRECTLY RELATED TO COMPENSATION OFFERED BY

THE ORGANIZATION.

H2 : EMPLOYEE TURN-OVER CAN BE REDUCED BY ADOPTING TO THE CORRECT

SELECTION, JUST POLICIES AND PRACTICES.

H3 : RESPECT, ENCOURAGEMENT AND SOCIAL WELFARE CAN MAKE EMPLOYEES TO

FALL IN LOVE WITH THE ORGANIZATION.

H4 : RIGHT INCENTIVES AND SUCCESSION PLANNING CAN DEVELOP LOYALTY,

GROWTH AND PRODUCTIVITY IN EMPLOYEES.

H5: PERMANENT JOB OFFER TO CONTRACTUAL EMPLOYEES CAN ILLIMINATE

ATTRITION AND DEVELOP LOYALTY ACROSS THE MARINE INDUSTRY

H6: MULTI-NATIONAL CREW CAUSE COMMUNICATION GAP THUS RESULTING

IN DISHARMONY AND INCREASE ATTRITION AMONG CREW
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HYPOTHESIS INDEPENDENT DEPENDENT MODERATING CONTROLLING

VARIABLE VARIABLE VARIABLE VARIABLE

COMPENSATION RETENTIONOF REWARDS PERKS BENEFITS

H1 EMPLOYEES

COMPANY RETENTION OF FAIRNESS JUSTICE

H2 POLICIES EMPLOYEES

EMPLOYEE’S RETENTION OF ORGANIZATIONAL SOCIAL

H3 RESPECT EMPLOYEES LOVE WELFARE
SATISFACTION ENCOURAGEMENT
RIGHT RETENTION OF LOYALTY SUCCESSION
H4 INCENTIVES EMPLOYEES PRODUCTIVITY PLANNING
RECOMMENDATION GROWTH
PERMANENT JOB RETENTION OF LOYALTY SELECTION POLICY
H5 CONTRACTUAL EMPLOYEES SECURITY
JOB
COMMUNICATION RETENTION OF COMMON HARMONY
H6 GAP – MULTI EMPLOYEE LANGUAGE
NATIONAL CREW ETHNICITY

Scope of the Research:

As for as the problem of employee retention is concerned, it is a well known fact and that, it
dominates the Marine Industry and has caused considerable damage to it, at large, on global
level. With the rapid switching of floating and shore staff from company to company, in search
of better compensation and other perks, leaves the owners high and dry. They are then decreased
to accept incompetent staff to run their ships exposing ships, cargo, crew and environment to
higher degree of disasters in terms of frequency, damages and costs. The research is basically
aimed at defining the problem, its causes and possible solutions. The pattern to be used will be in
the form of a questionnaire, as it has already been described in the ‘ Research Questions ‘ section
in details.

Justification:

Shipping Industry is the back bone of economy of any country, especially those who are blessed
with sea shore having open and round the year access to international waters for the export and
import of goods. The economy associated with sea transport is at maximum, as compared to
other means of transport such as air, road and railways, in terms of expenses, safety and time
span. No other transportation mode can compete with sea transport due to its immense
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volumetric movement potential in shortest time span with least damage proximity compared to
its total volume. All other means together cannot come close to even its half in all respects as
mentioned above.

Any problem such as this will, definitely, hamper the growth of industry and as well as affect the
other businesses dependent upon the transportation of goods to various customers worldwide. To
avoid widespread damage to, not only the shipping industry, but other associated businesses
must be addressed and taken care off.

Definition of Technical Terms, Concepts:

Since the shipping industry and its associated terms and concepts are not very familiar in the
shore establishments, these, therefore, needs to be explained here for reference and easy
understanding in the context of the sentence, topic and subject.

Master Mariner: The Person-in-charge of the ship whose command is the final word on the ship
and demands unquestionable loyalty from all of his crew.

Operation Manager: The manager ashore, most likely an ex-captain, coordinating and advising
the ships captain of day to day working in relation to various aspects of shipping such as cargo,
bunkers, port information, port agents, crew matters, P&I club, port state control, class surveys,
cargo gear inspections, hull and machinery periodical surveys, provisions, fresh water CTM and
crew welfare.

Chartering Manager: A qualified chartered ship broker, negotiating freight and other charter
party terms, with various ship-charterers, as per vessel schedule, readiness, space availability and
suitability, for the engagement of cargo lifting once previous cargo has been delivered and vessel
is ready to load next cargo.

Manning Agency: A recruiting firm, operating independently, offering certified, qualified and
experienced marine, navigating officers and engineers to work on various specialized cargo
ships.