MANPOWER UTILISATION AND FLEXIBILITY IN SHIPBUILDING 'A CASE STUDY ON ORGANISATIONAL CHANGE' by ROBERT GORDON THESIS SUBMITTED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY AT THE UNIVERSITY OF GLASGOW - DEPARTMENT OF SOCIAL AND ECONOMIC RESEARCH June 1993 c Robert Gordon 1993 ProQuest Number: 13831554 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a com plete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. uest ProQuest 13831554 Published by ProQuest LLC(2019). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States C ode Microform Edition © ProQuest LLC. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 9 I) 5 5 I Glasgow* 'I university [ LIBRARY | ACKNOWLEDGEMENTS I wish to acknowledge the support and assistance which I have received during the course of this work. In particular, Professor Laurie Hunter for his 'expert' supervision, Jane Bisset who is responsible for the graphics and illustrations, Jean Pirrie, who typed the thesis and Chris Yuill for his supportive words of wisdom. TABLE OF CONTENTS Pace 1 LIST OF ILLUSTRATIONS V ABSTRACT xiii INTRODUCTION 0.1 The Aims XV 0.2 The Plan and Structure xv i PART ONE - A HISTORICAL REVIEW OF THE UPPER CLYDE SHIPBUILDING INDUSTRY PREFACE 1 1 . A HISTORICAL REVIEW 1.1 The Establishment 2 1.2 The Shipyards 7 1.3 Shipyard Closures 15 1.4 Reasons for Decline 18 PART TWO - THE THEORIES RELATED TO MANPOWER UTILISATION PREFACE 24 2. JOB SPECIALISATION 2.1 Introduction 25 2.2 Division of Labour 26 2.3 Job Specialisation 30 2.4 Dehumanising Effects 33 2.5 Human Relations Approach 35 2.5 Attitudes and Reality 37 3. FLEXIBLE WORKING 3.1 Introduction 42 3.2 Functional Flexibility 43 3.3 Numerical Flexibility 49 3.4 The Flexible Firm 53 3.5 The Conceptual Framework 57 11 Page No. PART THREE - RESEARCH RELATED TO THREE APPROACHES TO MANPOWER UTILISATION ADOPTED AT THE GOVAN SHIPYARD PREFACE 63 4. The Classical Approach to Manpower Utilisation MODEL ONE - PART 1 4.1 Shipbuilding Manpower 68 4.2 Trade Specialisation 73 4.3 Manpower Structures 75 4.4 Management Structure 79 4.5 Incentive Systems 83 4.6 Piece-work Incentives 87 4.7 Conclusions 89 5. The Classical Approach to Organisation MODEL ONE - PART 2 5.1 Technical Functions 91 5.2 Commercial Function 96 5.3 Personnel 98 5.4 Training 101 5.5 Health and Safety 104 5.6 Participation and Involvement 105 5.7 Conclusions 109 6 . The Scientific Management Approach to Industrial Relations MODEL TWO - PART 1 6.1 The Aims 112 6.2 Attitudes and Redundancy 115 6.3 Manpower Constraints 119 6.4 Agreement and Ownership 123 6.5 Participation and Communication 125 6.6 The Shop Stewards Role 129 6.7 Conclusions 131 Page No. 7. The Scientific Management Approach to Manpower Utilisation and Organisation MODEL TWO - PART 2 7.1 Flexibility Agreements 134 7.2 Training 137 7.3 The Foreman's Role 140 7.4 Organisation 143 7.5 Scientific Management 146 7.6 Productivity Improvements 149 7.7 Conclusions 153 8. The Flexible Working Approach to Manpower Utilisation MODEL THREE - PART 1 8.1 Introduction 157 8.2 The Challenge 160 8.3 The Strategy 165 8.4 Manpower Examination 168 8.5 Attitudes and Resistance 175 8.6 Agreements and Initiatives 179 9. The Flexible Working Approaches Implementations MODEL THREE - PART 2 9.1 Flexibility Training 185 9.2 Safety Education 190 9.3 Supervisory/Management 194 9.4 Safety Management Education 199 9.5 Competitive Realities 203 9.6 Conclusions 206 PART FOUR - DEVELOPING AND IMPLEMENTING MANPOWER UTILISATION POLICIES AT KVAERNER GOVAN LIMITED PREFACE 209 10. The Kvaerner Govan strategy 10.1 Introduction 211 10.2 The Logic 216 10.3 The Strategy 224 10.4 Conclusions 229 iv Page No. 11. Kvaerner Govan/s Analysis of Unproductive Manhours 11.1 The Sources 231 11.2 Lost Manhours - Concessions 232 11.3 Lost Manhours - Performance 239 11.4 Lost Manhours - Organisation 244 11.5 Lost Manpower 251 11.6 Conclusions 255 12• The Kvaerner Govan Approach to Industrial Relations 12.1 The Framework 259 12.2 Attitudes & Economic Reality 262 12.3 Agreements and Ownership 266 12.4 Communications 270 12.5 The Shop Stewards Role 274 12.6 Conclusions 279 13. Kvaerner Govan's Action Programme - Phase One 13 .1 The Actions 282 13 .2 Concessions 285 13.3 Performance 290 13.4 Absenteeism 298 13.5 Conclusions 302 Kvaerner Govan's Action Programme - Phase Two 14.1 The Actions 304 14.2 The Organisation Dispute 306 14.3 Organisational Actions 311 14.4 Bureaucratic Structure 315 14.5 Conclusions 322 14.6 Effectiveness of the Strategy 325 15. Conclusions 15.1 Introduction 329 15.2 The Classical Approach 330 15.3 The Scientific Management 335 Approach 15.4 The Flexible Working Approach 342 15.5 The New Realism Approach 348 REFERENCE SOURCES 359 LIST OF ILLUSTRATIONS Figure Number Title 1.1 Population of Govan Reference Source:- Campbell (C. 1988) 1.2 Clyde Shipyards - 1948 Reference Source:- Shields (J. 1949) 1.3 Fairfield's Yard Lay-Out Reference Source:- Fairfield (1908) 1.4 Linthouse Yard Lay-Out Reference Source:- Carvel (J. 1951) 1.5 Clyde Shipyards - 1948 Reference Source:- Shields (J. 1949) 1.6 Clyde Shipyards - 1948 Reference Source:- Shields (J. 1949) 1.7 '•Queen Elizabeth" Reference Source:- Shields (J. 1949) 1.8 U.K. Percentage of World Output Reference Source:- Lloyds (1978) 1.9 Decline of Upper Clyde Shipyards Reference Source:- Shields (J. 1948) 2.1 Increased Affluence Reference Source:- Maynard (H.B. 1975) 2.2 Days Lost through Stoppages in Certain Industries Reference Source:- Maynard (H.B. 1975) vi Figure Number Title Page No. 2.3 Average Earnings of 40 Full Time Adult Workers Reference Source:- Woodcock (G. 1971) 2.4 Absenteeism in Shipbuilding 41 Reference Source:- Woodcock (G. 1971) 3.1 Job Grid Matrix 46 Reference Source:- Cassells (J. 1986) 3.2 Examples of Functional 47 Flexibility Reference Source: Cassells (J. 1986) 3.3 The Flexible Firm Model 55 Reference Source:- Atkinson (J. 1985) 3.4 Conceptual Framework 57 Structures Reference Source:- Based on Douna & Schreuder (1992) 4.1 Birthplace of Household 68 Heads in Govan Reference Source:- Campbell (C. 1988) 4.2 Proportion of Household 70 Heads Employed in Shipbuilding Reference Source:- Campbell (C. 1988) 4.3 Types of Employment Taken 70 Up By Immigrant Groups in Percentage Terms Reference Source:- Campbell (C. 1988) 4.4 The Individual Immigrant 71 Groups Share of Jobs Reference Source:- Campbell (C. 1988) 4.5 Boilers for Warship Engines Reference Source:- Scotts (1906) vii Figure Number Title Page No. 4.6 Plating Machine Shop 77 Reference Source:- Fairfield (1908) 4.7 Typical Management Structure 80 Of Production Function Reference Source:- Castle (C. 1988) 5.1 Shipyard Drawing Office 92 Reference Source:- Fairfield (1908) 5.2 Tracing Department 93 Reference Source:- Fairfield (1908) 5.3 Moulding Loft 94 Reference Source:- Fairfield (1908) 5.4 Reception of Material 96 Reference Source:- Fairfield (1908) 5.5 Apprentice Training School 103 Reference Source:- Carvel (J. 1951) 6.1 Monthly Labour Turnover 118 1966/67 Reference Source:- Productivity (Services 1967) 7.1 Productivity Services 144 Function Reference Source:- Productivity (Services 1967) 7.2 Productivity Records 150 Reference Source:- Productivity (Services 1967) 7.3 Manhour Improvement 152 Reference Source:- (Bisset (J. 1992) 8.1 A Profile of British 162 Shipbuilders Reference Source:- Parker (J. 1979) Vlll Figure Number Title Page No. 8.2 Unemployment by Region 163 Reference Source:- Parker (J. 1979) 8 . 3 Shipbuilding Costs 166 Distribution Reference Source:- Craig (Michael F. 1979) 8.4 Merchant Ship Review Areas 168 Reference Source:- Craig (Michael F. 1979) 8.5 Non Productive Time 170 Reference Source:- Craig (Michael F. 1979) 8.6 Working Day Improvement 172 In Productivity Reference Source:- Craig (Michael F. 1979) 8.7 Centralised Organisation 178 Structure Reference Source:- Atkinson (R. 1980) 9.1 Steelwork Flexibility 188 Training Reference Source:- Gordon (R. 1985) 9.2 Engineering Flexibility 190 Training Reference Source:- Gordon (R. 1985) 9.3 Safety Management & 193 Development Programme For Craft & Non-Craft Employees Reference Source:- Yuill (C. 1985) 9.4 Steelwork Supervisory 197 Training Reference Source:- Gordon (R. 1985) 9.5 Engineering Supervisory 198 Training Reference Source:- Gordon (R. 1985) ix Figure Number Title Page No. 9.6 Safety Management Education 201 Reference Source:- Yuill (C. 1985) 9.7 B.S. Ship Completions 204 Reference Source:- British Shipbuilders (1983) 10.1 Govan Shipbuilders Ltd. 212 Losses After Tax:1982-1988 Reference Source: Draegebo (S. 1990) 10.2 Areas of Manpower 215 Ineffectiveness Reference Source:- Orr (J. 1990) 10.3 Local Board of Directors (1989) 220 Reference Source:- Gordon (R. 1992) 10.4 Local Board of Directors (1990) 221 Reference Source:- Gordon (R. 1992) 10. 5 Kvaerner Strategy 225 Reference Source:- Gordon (R. 1991) 10. 6 Manpower Policies 228 & Disciplines Reference Source:- Gordon (R. 1991) 11.1 Stopping and Starting Times 234 Reference Source:- Briggs (C. 1989) 11.2 The Working Day 235 Reference Source:- Briggs (C. 1989) 11.3 First Aid Incidents 240 Reference Source:- Goldie (J. 1989) 11.4 Shift Working Patterns 246 Reference Source:- Bisset (J. 1991) 11.5 Bureaucratic Structure 249 Reference Source:- Bisset (J. 1992) X Figure Number Title Page No. 1 1 . 6 Sickness Absence 254 20 Years Service Reference Source McGoogan (K.