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To present favourable environment and conditions to ensure employees can put their qualities in the service of the organisation as well as to themselves, producing optimum results in the best possible manner
Recruiting (Beardwell and Holden 1994): When it comes to recruiting, Costa Crociere utilizes a more Ethnocentric manner for the key roles throughout the organisation, where the control falls only on the hands of Italian nationals (Dowling and Schuler 1990). However, Costa has applied many different methods of recruiting, better explained in task 2.1 .
Outsourcing (Costa Employee Handbook): Costa Crociere have all services and functions of the Shops inside its vessels performed by non-employees, with the help of an Agency Provider.
Screening Applicant (Armstrong 1998): The applications are recorded and compared with the help of a previous set criteria, and short-list and reserve list are drown up. A 'holding' letter is sent to candidates while a reject letter is sent for those who are unsuitable for the vacancy. The first interview is scheduled to those who have passed the screening process.
Selecting New Employees (Job Opportunities, Costa Website 2009): The selection process begins with a careful organizational analysis that is divided into three main phases: the individual interview with Human Resources Department; Selection Testes, and Interview with managers of the concerned departments. Each of the process are better explained in task 2.1 .
Provision of Contracts (Taylor 2002): The contracts are formed by fixed-term clauses, with a fixed duration, usually of 6(six) months minimum, which can be extend. Contracts have a Probationary Clause so that individuals will have their performance analysed for the offering of promotion in the coming contract, the right to have their contract renewed for the same job role or, in case of poor performance, not be offered a second contract.
B) Learning and Development
Career Development (A Career in Costa, Costa Website 2009): In 2006 alone, the allocation of 4 million euros was to ensure a proper training and development to its shipboard and shore side personnel (Costa Institutional & Internal Communication 2007). Costa Crociere accounts for 8 training centres worldwide and has a number of programs set to help personnel to grow in knowledge and develop themselves as employees as well as individuals. The subject is better covered in Task 2.2.
C) Paying Employees and Providing Benefits (Costa Employee Handbook) (Beardwell and Holden, 1994)
Pay Systems: Employees are paid monthly, and their salary is based on some factors such as experience and performance. The decisions regarding progression of pay is formalised and proceduralised and it takes place automatically by the implementation of fixed rules.
Contingent Pay/Compensations: There are a number of bonus schemes relating: financial rewards (to results, competence, contribution, skill and effort) and non-financial rewards (recognition, increased responsibility and the opportunity to achieve and grow). Are based on:
Output/productivity of individual based on assessment of performance;
Output/productivity of group/section/department;
Output/productivity based on profits generated.
Benefits: Package introduced to help improving retention and recruitment, increase motivation, maintain 'value for money' and help to create a Single Status environment.
Food, accommodation, medical care, airline ticket to and back from the port of embarkation;
Sports/social facilities exclusive for people working onboard;
Work performed in many overseas countries and places;
Non payment of taxes for the money earned aboard cruise ships to citizens of some countries;
Visits to a variety of places, countries, climates and continents.
Onboard and Off board personnel:
Free medical insurance;
Discounted cruise rates for relatives and family members;
D) Legal Framework: Health and SafetyÂ (B.E.S.T.4 Health, Costa Website 2009) (Costa Employee Handbook)
The pursue of Health and Safety in the workplace: The recognition for the company's pursue of a health and safe working environment has led the Italian Company to achieve the OHSAS 18001 certification, which is also part of the B.E.S.T. 4 scheme (Business Excellence Sustainable Task). The safety regulations are based on Health and Safety Code - Italian Legislative Decree no. 81 of 2008 - both for shore side and shipboard employees. In addition, all vessels are required to have an internationally certified Safety Management System (SMS).
Preventing Violence in the Workplace: There are violence prevention programs for employees to learn how to recognise potentially violent behavior and to report it before it's too late, as well as handleling it in the first instance. It protects the employees, avoids costly lawsuits between employees and the company and preserves the company's reputation.
E) Sustaining High-Performing Employees (Armstrong 1998) (Costa Employee Handbook)
Employee Performance Management: Regarding individuals, managers assess conclusion on the employee's level of achievement by the end of each contract, reviewing what was monitored, giving to the organisation and employee the feedback with possible paths for improvement or rewards.
Group Performance Management: Managers assess to which extent the efforts of the group/department were able to contribute towards the organisations' goals. Are also related to various kinds of performance-related and motivation pays.
The 94th International Labour Conference, February 2006, and the Maritime Labour Convention, 2006, set out the conditions for decent work in the maritime sector.
Minimum requirements were set for seafarers to work on a ship, and contain provisions on conditions of employment, hours of work and rest, accommodation, recreational facilities, food and catering, health protection, medical care, welfare and social security protection. The Convention also provides for a maritime labour certificate, issued if labour conditions comply with national laws and regulations.
Minimal Wage (C131 Minimum Wage Fixing Convention, 1970): The elements to be taken into consideration in determining the level of minimum wages shall be appropriate in relation to national practice and conditions, include:
(a) The needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups;
(b) Economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment.
Remuneration (C100 Equal Remuneration Convention, 1951): Equal remuneration must be established without discrimination, and this application must be ensured to all workers. Measures are taken to promote objective appraisal of jobs on the basis of the work to be performed are not considered as being contrary to the principle of equal remuneration for men and women workers.
Discrimination (C111 Discrimination, Employment and Occupation Convention, 1958): Any distinction, exclusion or preference made on the basis of race, colour, sex, religion, political opinion, national extraction or social origin, are not allowed by the Company. Each Member must declare and pursue the national policy designed to promote equality of opportunity and treatment in respect of employment and occupation.
Workers with Family Responsibilities (C156 Workers with Family Responsibilities Convention, 1981): Members with family responsibilities who are engaged in employment have the right to do so without being subject to discrimination and, to the extent possible, without conflict between employment and family responsibilities.
Seafares' hours of work and hours of rest (C180 Seafarers' Hours of Work and the Manning of Ships Convention, 1996). The limits on hours of work or rest shall be:
Maximum hours of work shall not exceed: 14 hours in any 24-hour period; and 72 hours in any seven-day period;
Minimum hours of rest shall not be less than: ten hours in any 24-hour period; and 77 hours in any seven-day period.
Hours of rest may be divided into no more than two periods, one of which shall be at least six hours in length, and the interval between consecutive periods of rest shall not exceed 14 hours.
Posting is required in an easily accessible place.
Sickness Benefit: Personnel are secured the provision of sickness benefit. The contingency covered includes incapacity for work resulting from a morbid condition and involving suspension of earnings, as defined by national laws or regulations.
Medical Care: Personnel is secured the provision of benefit in respect of a condition requiring medical care of a preventive or curative nature. The contingencies covered include any morbid condition, whatever its cause, and confinement and their consequences. Cost of the medical care may be shared.
Unemployment Benefit: Where classes of employees are protected, the benefit is of a periodical payment calculated in such manner as to comply either with the requirements, and the duration may be limited to 13/26 weeks within a period of 12 months.
Employment Injury: Due to accident or a prescribed disease resulting from employment, the contingencies covered include a morbid condition; incapacity for work; total loss of earning capacity or partial loss, likely to be permanent, or corresponding loss of faculty; and the loss of support suffered by the widow or child as the result of the death of the breadwinner;
Maternity Benefit: In respect of pregnancy and confinement and their consequences, the maternity medical benefit is a periodical payment calculated in such a manner as to comply either with national requirements and the periodical payment may be limited to 12 weeks, unless a longer period of abstention from work is required.
Diversity Management: The competitive advantage that the company is very proud of comes from its diversity. Costa is aware that human beings differ in many ways and try to capitalise on differences and extract this diversity as the source of creativity and innovation that provide the potential for future development and competitive advantage.
Employee Involvement (Marchington and Wilkinson 2006): Costa Crociere applies two forms of Employee Involvement and are listed as follows:
Downward Communication: In the number of training and Development Programmes within the organisation, it is included the kind of education needed for the employee to accept plans and tasks without questioning. From a range of videos, newspapers, reports and meetings, the Company informs employees, as well as builds in them the idea of the behaviour expected throughout the contracts, without them offering to the organisation any kind of constraint. The idea behind the managers' attitude is called 'Costa Touch', and must be accepted, repeated until it becomes an automatic manner. 'Buon Giorno Smile', a slogan that shows the way Costa employees are famous for addressing guests, can be used as an example that helps the organisation to sustain competitive advantage through improvement of costumer service.
Financial Involvement: As it was already stated previously under the title of Contingency Pay/Compensations, the Organization utilizes the offering of a number of rewards to those employees who contribute to the overall success of the organization.
Industrial Relations (Armstrong 1998)
Trade Associations (Code of Business Conduct and Ethics): The Company allows trade associations to perform functions in areas such as consumer education and industry standards. There is, however, some antitrust risk found by the Organization for employees to have membership in a trade association because it involves meetings of competitors that could lead to an informal discussion of forbidden business matters. Prior review should be conducted prior to the adoption of, or participation in, standards that create hardship for certain segments of the relevant industry.
Disciplinary Procedures (Marchington and Wilkinson 2006): There are a number of offences that must result in disciplinary action and includes: absenteeism, performance, time keeping, theft/fraud, refusal to obey instructions, aggression/verbal abuse, alcohol/drug abuse, assault and sexual/racial harassment.
Some offences can have corrective and appropriate actions, and employees need the chances for improvement (the offering of training to help performance, support for those with personal problems). There are the informal oral warnings, the formal oral warnings that are written (maximum number allowed is 5 (five) for all Costa Employees during one contract), and the final written warning specify dismissal.
The punitive action of dismissal can be considered fair under the Industrial Relations Act 1971, which states it to be legal when:
There is lack of capability for performing work that the person was employed to do;
Duty or restriction imposed under or by a legal enactment;
Some other substantial reason that justify the dismissal.
Code of Conduct (Code of Business Conduct and Ethics)
Dealing with Drugs in the Workplace: According to the report 'Drink, Drugs and Work don't mix' by Alcohol Concern and the Institute for the Study of Drug Dependence (McKibben 1999), most people who have an addiction problem are in work and are particularly aged 16-29. For Costa, where safety of individual, colleagues and a great number of guests is involved, the matter becomes a criminal offence and strict regulations are applied.
There is the conduct of pre-employment testing for illegal drugs, and failing it means no job acceptance. Furthermore, in case of suspicion of drug/alcohol use, employees undergo a test and may be instantly dismissed.
Improper Payments and Bribes: Employees have a responsibility to uphold the Company's reputation and policies of business ethics. Payments in the form of money, gifts, favors or entertainment cannot be made to any government officials. The violation of the law is strictly prohibited.
Transactions: Any kind of material, non-public information regarding the company must not be purchased, sold, or passed to another party. This policy continues to apply after termination of employment if employee is in possession of non-public information at the time of termination.
Internet Policy: Every employee is responsible for using the Company's computer system, including, without limitation, its electronic mail system and the Internet properly and in accordance with Company policies.
Conflicts of interest: Employees should not permit personal interests to conflict, or even appear to conflict with the job responsibilities. This includes relationships with suppliers, customers or other persons doing or seeking to do business with the Company.
Reporting: The Company expects employees, officers and directors to take the responsability of reporting very seriously and to provide accurate answers
Grievance handling (R130 Examination of Grievances Recommendation, 1967) (Costa Employee Handbook)
General Principles: any worker who, acting individually or jointly with other workers, considers that he has grounds for a grievance must have the right to submit such grievance without suffering any prejudice whatsoever as a result; and to have such grievance examined pursuant to an appropriate procedure.
The grounds for a grievance may be any measure or situation which concerns the relations between employer and worker or which affects or may affect the conditions of employment of one or several workers in the undertaking when that measure or situation appears contrary to provisions of an applicable collective agreement or of an individual contract of employment, to works rules, to laws or regulations or to the custom or usage of the occupation, branch of economic activity or country, regard being had to principles of good faith.
The employee must set out the grievance and send a copy to the Company; employee is then invited to a meeting to discuss the grievance; the Company inform employee of the response and notify to employee about their right to appeal. If the appeal takes place, then the employee is given the Company's final decision.
Personnel Records (C180 Seafarers' Hours of Work and the Manning of Ships Convention, 1996)
Records of seafarers' daily hours of work or of their daily hours of rest are maintained to allow the Company to monitor properly its employees. The seafarer receives a copy of the records pertaining to him or her, which is endorsed by the master, or a person authorized by the master, and by the seafarer.
The procedures for keeping such records on board are made by each department, including the intervals at which the information is recorded. The format of the records of the seafarers' hours of work or of their hours of rest takes into account the available International Labour Organization guidelines and the use of standard format prepared by the Organization.
A copy of the relevant provisions of the national legislation pertaining to this Convention and the relevant collective agreements are kept on a board to be easily accessible to the crew.
The competent authority, the department managers, examine and endorse the records at appropriate intervals, to monitor compliance with the provisions governing hours of work or hours of rest established by law.
If the records or other evidence indicate infringement of provisions governing hours of work or hours of rest, the competent authority require that measures are taken so as to avoid future infringements.
Personal Wellness: There are chapels available onboard of ships, with programs of counselling and individual services for those employees in need; as well as gyms, Jacuzzis, films and bicycles to lend, weekly/monthly parties in the employees' lounge and common areas.
Social Accountability and Labour Conditions: A key component of the Company's core values is to provide a working environment for its employees which is aligned to the best standards. The Company is committed to the improvement of employees' welfare and workplace conditions. The Company encourages all employees to notify any possible violation of its standards to their Department Head or to H.R. Department, for reporting to the CEO.
Justify how effective management of Human Resources achieved the objectives of the organisation.
Costa Crociere main objectives are:
Achieve a worldwide leadership position;
Reinforce the number one position in Italy and Europe;
Expand fleet and continue to introduce innovative technologies to distinguish products and services from competitors;
Become a leader in the cruise market with respect to environmental excellence, waste reduction and the impact on the environment;
Guarantee employees with a healthy and safe working environment, provide them with adequate training, and with the necessary tools and equipment;
The HR department bring the objectives of the company into life with:
The arrangement of a number of evaluation and development system, to motivate employees to a constant and optimal use of their own skills. in order to obtain excellent performances and a high personal motivation level.
The improvement of skills, potential and performances, by providing training and development programs to help to construct awareness and build knowledgeable employees, to offer them the experience needed for the job to be performed with excellence, as well as the application of specific individual paths of professional and managerial growth.
The payment and provision of a number of benefits.
If employees are motivated, they treat guests in a professional, enthusiastic, and positive manner. Guests are assets for the Company and are therefore encouraged to repeat their cruise experience as many time as possible. Employees have a great impact on guests and HR knows.
HR understands that the pleasure of working for the Company must be made visible to everyone. Through motivation and creation of an enjoyable working environment, recognitions in the form of rewards and the offering of career growth; all are ways to work together with employees so that the Company achieves the goal of becoming worldwide leader, as well as to carrying on as leader in Italy and Europe.
The recruitment of diverse employees, from about 80 countries.
To present to guests a company with an international face, with employees coming from a variety of backgrounds, to promote friendships and build trust, make guests to feel connected to the company through a propitious environment.
Making employees, as well as third parties, aware of the social, environmental and safety issues in the workplace.
By applying strict rules and regulations to employees regarding safety, the organisation care for the lives of all people under the company's responsibility throughout the vacation time of thousand guests entering its fleet every week.
Employees are offered all training needed so that all safety procedures happen in a well and organized manner.
Therefore, the Management is committed to spreading its policies to all interested parties and to train, inform and make employees and partners aware, to ensure that company's processes will be managed in the correct way in order to obtain the best possible results in terms of quality, environment, safety and social accountability.
All these procedures happen so that Company maintains its commitment in caring for people, as well as the environment in which the company operates.
1.3 Generally explain any two models of HRM (Beardwell and Holden 1994)
Model 1: The matching model of HR
The 'matching model' is also known as the' Michigan model', or 'best-fit' approach to human resource management. It requires that Human Resource Strategies have a tight fit to the overall strategies of the business, principally with the Human Resource Planning. As such, it limits the role of HR to a reactive, organizational function and under-emphasizes the importance of societal and other external factors. However, it allows HRM to assume a more important position in the formulation of organisational policies.
Selection of the most suitable people to meet business needs;
Performance in the pursuit of business objectives ;
Appraisal, monitoring performance and providing feedback to the organization and its employees;
Rewards for appropriate performance;
Development of skills and knowledge required to meet business objectives.
These processes are linked in a human resource cycle and in concept, this method depends on a rational, mechanical form of organizational decision-making. It is also both prescriptive and normative, what implies that the fit to business strategy should determine HR strategy.
Model 2: The Map of HRM Territory
This map is based on an analytical approach and provides a broad causal depiction of the 'determinants and consequences of HRM policies.' It shows human resource policies to be influenced by two significant considerations:
Situational factors in the outside business environment or within the firm, such as laws and societal values, labour market conditions, unions, work-force characteristics, business strategies, management philosophy, and task technology. These factors may constrain the formation of HRM policies but they may also be influenced by human resource policies.
Stakeholder interests, including those of shareholders, management employees, unions, community, and government. Human resource policies should be influenced by all stakeholders, if not, 'the enterprise will fail to meet the needs of these stakeholders in the long run and it will fail as an institution.'
The authors also contend that human resource policies have both immediate organizational outcomes and long-term consequences. Managers can affect a number of factors by means of the policy choices they make, including:
The overall competence of employees;
The commitment of employees;
The degree of congruence between employees' own goals and those of the organization;
The overall cost effectiveness of HRM practices.
These 'four Cs' do not represent all the criteria that human resource policy makers can use to evaluate the effectiveness of human resource management, but consider them to be 'reasonably comprehensive' although additional factors may be add depending on circumstances.
2B. For the same organisation examine HR planning and development methods.
2.1 Explain and critically evaluate methods of HR planning, recruitment and selection. (Beardwell and Holden 1994)
Human Resource Planning
The act of assessing future people requirements by numbers, levels of skill and competence. Involves three key elements:
Data gathering: the manpower planning approach which addresses questions such as how many staff , how they will be distributed, which is the profile, how many will leave in each of the next five years, how many will be required in one, five, ten years. With this information in hands, and the help of the Human Resource Information System, HR have these questions answered so to go to next step of HR Planning.
Analysis and forecasting: The method utilized by the company to forecast labour demand and supply combines two techniques:
Delphi Technique: HR has facilitators to solicit and collate expert opinions on labor forecasts. After answers are received, a summary of the information is developed and distributed to the experts, who are then requested to submit revised forecasts.
Replacement Planning: Forecasting estimates are based on charting techniques, which identify current job incumbents and relevant information about each of them. This information includes a brief assessment of performance and potential, age length of time in current position, and overall length of service.
Regression Model: Fluctuations in labor levels are projected using relevant variables, such as growth in business.
Time-Series Model: Fluctuations in labor levels are projected by isolating trend, seasonal, cyclical, and irregular effects.
Succession and Career Planning: The larger issue in career planning is leadership development, tracking, and developmental opportunities. The organization matches between its future needs and the aspirations of individuals by providing them with growth opportunities that keep them stretching and finding more promising opportunities they might find elsewhere. Costa's Succession information is compound of: monitoring future needs, assessing talents, engaging future leaders, development of a range of activities to engage and extend employees' capabilities, monitoring the process.
The application of the recruitment process in Costa Crociere is directed for the purpose of drawing and retaining interest of candidates, while being an appealing organisation for those who come in contact with it. Can be divided in:
Internal: Employee Referral
The organization benefits from this type of recruiting, once it posts the jobs inside its own network and intranet addressing only existing employees. Can be seen as a form of career development.
Unsolicited applicants: when there are no positions available or the exiting ones are not relevant, prospective employees send in their CVs through Internet or by post. The information is kept by the 'Costa Group Database' and is accessed whenever the urge arises.
Previous applicants: Costa Crociere refers back to previous applicants through the 'Costa Group Database' in search of covering vacancies as they arise, benefiting from a quicker process as well as raising the image of the organisation.
Links to schools, colleges and universities: the Company is supplied with lists from main Italian and international universities as well as working in association with some Master courses and institutes of high education in countries such as Italy, India, Philippines and Thailand, offering a number of vacancies and promoting integration between work and school.
Recruitment Agencies: they act as third parties consultants that do the link between the organisation and the pool of applicants. Are scattered all over the globe and are responsible for recruiting by observing the company need and the ability of employees-to-be. Work in the form of contracts with a number of qualified agencies.
E-Recruitment: by stimulating the interest of a wide range of people through the Internet, the company cut costs and complement the will of diversification, as well as maintaining its reliance on international staff, that already accounts for 80 countries representatives within the organisation.
Press: the Company relies on trade and professional journals when it comes to recruiting high-level managers.
Individual interview with Human Resources Department: The aim is to identify people who, according to the their personal qualities, have requirements corresponding to the position they will occupy and to the expectations of the company as a whole.
Selection tests: Aptitude and Personality tests
Interview with managers of the concerned departments.
Questions are asked in relation to the subject area of the applicant and are related to their professional qualities as well as past achievements in previous jobs.
3.1 Critically evaluate overall performance of HR
Overall performance of HR Planning
Although company assumes that the current activities are being performed effectively, the future is uncertain. The Company relies too much on planning and take actions for the long term, but it may vary. The system still implies that the business activities will continue in the same growing pace, so it is increasing staff levels and not considering the specific competencies that are needed to achieve the strategic objectives. There is a growing competition for high skilled employees among ship cruise companies, however the Company underestimate the loss of qualified staff to competitors. The attitude of top Management is too conservative to welcome new ideas and arrangements. Gathering all the information needed, processing it and forecasting activities are too detailed and therefore, time consuming and expensive.
Overall performance of Recruitment
Internal recruitment is more an advantage for existing employees, however, for the organisation, external candidates may be better qualified for the job posted; existing staff usually feel they have the automatic right to be promoted, and the business become more and more resistant to change; and another post must be filled. Recruitment agencies try to create a diverse environment for prospective employees, which may not be the reality of the cruise ship company, contributing for frustration and consequently, employee turnover. Recruitment made through the Internet improves efficiency of recruitment, however, screening and checking the authenticity of million of resumes is a problem and time-consuming exercise.
Overall performance of Selection
The selection process relies heavily on interviews. This technique maximize percentage of stereotypes, there is the use of subjective evaluations, decisions tend to be made within the first few minutes of the interview with the remainder of the interview used to validate or justify the original decision, the negative information seems to be given more weight, there is not much evidence of validity of the selection procedure and interviews are not as reliable as tests, so should not have such a widespread use as the company's main selection technique.
2.2 What Developmental methods is it using? Critically evaluate them.
A number of Developmental Methods are used, and are divided in: (A Career in Costa, Costa Website 2009)
Planning and developing the careers of people with potential.
Training and Development
Systematic, formal training is applied for the performance of a range of job throughout the organisation and includes careful assessments and attention to determining training goals, designing materials that are directly aligned to achieve the goals, implementing training, and evaluation. The investment allocated for training employees has grown considerably, and embraces a wide range of activities, divided among:
Technical: Related to specific subjects such as safety, health, environment, survival and rescue, fire, first aid. Occur occasionally and ensure personnel to meet international regulations in off the job trainings (IMO-STCW) as well as internal requirements, with on job trainings.
Managerial training (better explained in Management Development)
Professional Training: Costa Preparatory Campus
They are training centres, established by the company or through agreements with local universities, in its main recruiting countries and provide pre-embarkation training to shipboard hotel personnel. In this centres, some onboard structures are reproduced to simulate the real working experience onboard of the Costa ships.
School leavers/graduates training
Courses organized to promote interaction theory/ practice among Master Students, in which they are offered three months experience on board of Costa ships. Those with better grades at the end of the course are offered a career in the Costa fleet.
Employee Orientation and Personal Development
Given the on board presence of a heterogeneous and diversified customer base, language courses are organized to improve communication skills, and intercultural management courses so employees learn how to respond to different needs.
Deck, Engine and Hospitality officers undergo training to ensure they increase their capacity to manage subordinates. It integrates management from both on and offshore in the managerial development initiatives.
Pre-boarding and job training activities allow swifter introduction to supervisory role, and may be offered if contracts are finished with excellence; known through feedback.
3.1 Critically evaluate overall performance of HR
There are the difficulties faced by the organization in developing trainings that addresses real issues. Trainings amount for huge sum of money being allocated. The trainings that are most expensive to the company are those which do not offer the security the company need, just because these trainings are given to starters. A considerable number of people that undertake all these trainings leave the organization before the end of first contract. Another drawback regarding training is the ineffectiveness of training itself, once it is too much made of theories that are too far from the working environment and are applied only to specific situations.
Management and supervisoral trainings fail in choosing the right people. Employees who keep close to department heads and have the top employees' preferences are usually fast offered trainings for the career growth.
3C. Analyse ways in which performance of HR may be enhanced.
3.1 Covered along tasks 2.1 and 2.2
3.2 Provide suggestions to improve the functioning of HRM
Improvement and innovation comes from motivated and engaged employees, as well as being the source from where organizations as a whole can obtain suggestions for improvement. The subject is the first of a number, which can be improved by the Company. The process of listening to employees is one of most importance, once employees have their routine based on issues the top management is not aware of. Satisfactory employee voice and implementation of numerous methods for getting innovation ideas (room for conversations with employers, email communication and meetings in/out the workplace) are very important and still lack in the organization, once it adopts more of the Hard form of HR. Communication is not both ways yet, and employees do not feel they can fully accomplish their rights to speak and therefore not offer to the organization the positiveness they are willing to bring.
High employee turnover
When hiring new employees, the Company gives all of its focus to the packages of benefits they offer, the payment rates as the highest of the industry, the pleasure it proportionate employees by allowing them to travel and visit different cities and places all over the world. However, smaller but not less important issues are not addressed properly and become the major cause for the high employee turnover of the Company and the ship industry as a whole. Most of employees' time is spent inside the ship itself, where facilities are not always appropriate at all. The cabins are shared and do not offer much space, toilets are also shared and in some older ships, are in the corridors only. The food offered in the canteens does not take into consideration the taste of the more then 40 nationalities and religious beliefs. Crew work long hours and during festive dates, although workload increases, employees are not paid any extra. All these issues can only been seen by those working onboard, and are not addressed properly. The Company should take into consideration all the issues regarding its employees and provide a working, as well as a living environment, that helps employee staying far from family and friends and therefore decrease high employees turnover.
Pre-embarkation safety training
Apart from what is stated on the above paragraph, another question is that of prospectus employees feeling excited by the offerings of the Company and getting wrapt in advanced payments they have to face in order to be able to work for the Company. Safety requirements are high and environmental trainings that are requested, but not offered by the Company, are expensive and only account for the shipping environment. The Company could try to integrate those trainings or work together with specific companies that issue the safety certificate, to allow lower class prospective employees to be able to have international working experience onboard of ships. The Company should be, once again, clear about working and living procedures inside ships instead of only bosating the positive side, and forgetting to show the 'real' side of life on board.
Time for trainings and meetings
The Company is very proud of number and quality of training offered off and on board of the company's vessels. However, for those onboard, trainings and meetings are scheduled in the time employees are under their rest hours. It compromises the success of the trainings, once employees are tired and distressed because of lack respect of their rest hours. The Company must take into account employees' protective laws and respect employees' rest hours by selecting teams and rotate trainings and meetings until all personnel have being addressed.