The Management of Human Resources on Cruise Ships: the Realities of the Roles and Relations of the Hr Function

The Management of Human Resources on Cruise Ships: the Realities of the Roles and Relations of the Hr Function

THE MANAGEMENT OF HUMAN RESOURCES ON CRUISE SHIPS: THE REALITIES OF THE ROLES AND RELATIONS OF THE HR FUNCTION A thesis submitted to the University of Manchester for the degree of Doctor of Business Administration in the Faculty of Humanities 2015 Thomas Schlingemann Alliance Manchester Business School LIST OF CONTENTS List of Contents 2 List of Figures 7 List of Tables 8 Abstract 9 Declaration 10 Copyright Statement 10 Acknowledgements 11 1 Introduction 12 1.1 The arena of the research topic 12 1.2 Introducing key theories 15 1.3 The aim and research questions of this thesis 17 1.4 Research methodology 19 1.5 Overview of content 19 2 Introducing relevant HRM theory 21 2.1 Introduction 21 2.2 The organisational context of HRM 22 2.2.1 Introduction 22 2.2.2 Globalisation 23 2.2.3 Flexibility and fragmentation 26 2.2.4 Conclusion 27 2.3 HRM approaches and theories 28 2.3.1 Introduction 28 2.3.2 Some earlier developments within personnel management 29 2.3.2.1 The scientific management approach 29 2.3.2.2 The administrative science approach 30 2.3.2.3 The bureaucratic management approach 30 2.3.3 The emergence of HRM 33 2.3.4 Personnel management to HRM 34 2.3.5 Theoretical perspectives on HRM models 37 2.3.5.1 The Fombrun, Tichy and Devanna model of HRM 37 2 2.3.5.2 The Harvard model of HRM 39 2.3.5.3 The hard and soft approach to HRM 41 2.3.6 Strategic HRM 42 2.3.7 Conclusion 44 2.4 Theoretical frameworks within HRM 45 2.4.1 Introduction 45 2.4.2 The resource-based view of the firm 46 2.4.3 HRM, corporate strategy and performance linkage 48 2.4.3.1 Universalistic perspective 48 2.4.3.2 Contingent point of view 49 2.4.3.3 The configurational approach 50 2.4.3.4 The contextual perspective 50 2.4.4 From strategic HRM to the roles of the HR function 51 2.5 Roles of the HR function 52 2.5.1 Models of the HR role 52 2.5.2 Role ambiguities and conflicts of interest 54 2.5.3 Summary 55 2.6 Conclusion 56 3 The cruise ship embedded in the cruise industry 58 3.1 Background information on the tourism industry 58 3.2 Background information on the cruise line business 60 3.2.1 Historical overview of the cruise industry 60 3.2.2 Dimensions of growth within the cruise industry 62 3.2.3 Overview of the different cruise line brands 64 3.3 Institutional regulations 66 3.3.1 Flag of convenience system 67 3.3.2 International Transport Federation (ITF) regulations 69 3.3.3 International Maritime Organization (IMO) regulations 70 3.3.4 International Labour Organization (ILO) regulations 72 3.3.5 Summary of the analytical reflections 73 3.4 Background information on two cruise line companies 74 3.4.1 AIDA Cruises 74 3.4.2 Disney Cruise Line 77 3.4.3 Comparison of both cruise line companies 79 3.5 Conclusion 81 4 Organisational setting and human resources 83 4.1 Organisation structuring 85 4.2 Hierarchy 90 3 4.3 The cruise ship as a total institution 92 4.3.1 Characteristics of total institution 92 4.3.2 Cruise ships as a form of a total institution 94 4.4 Role theory and roles in a sociological sense 100 4.5 Influential factors for choosing a profession 102 4.6 Diversity on board cruise ships 105 4.7 Seamen’s relation with the outside world 107 4.8 Conclusion 108 5 Methodology 111 5.1 Introduction 111 5.2 Philosophical assumptions 112 5.3 Overall aim and research questions 116 5.4 Research design 118 5.5 Data collection process 121 5.5.1 Sampling strategy 121 5.5.2 Research interview and data collection 124 5.5.3 In the field as a researcher 127 5.6 Data analysis 128 5.7 Ethical considerations 131 5.8 Summary 131 6 HR onshore responding to contextual conditions 133 6.1 Introduction 133 6.2 Motivational factors to work in a seafarer profession 134 6.2.1 Motivational factors for choosing a seafarer profession 136 6.2.2 Motivational factors to continue shipboard employment 138 6.2.3 Summary 140 6.3 Recruiting and selection 141 6.3.1 Stakeholder, process and approaches of recruiting 142 6.3.2 Recruiting strategy 148 6.3.3 Summary 150 6.4 HRM on retention and career management 151 6.4.1 Retention 152 6.4.2 Summary on retention 155 6.4.3 Career management 156 6.4.4 Summary on career management 160 6.5 Conclusion 161 7 HR activities and their characteristics 164 4 7.1 Introduction 164 7.2 Assessment of HR activities 165 7.2.1 Summary and discussion of the assessment 168 7.3 Characteristics of HR activities 170 7.3.1 Transactional HR work 170 7.3.2 Tactical HR work 171 7.3.3 Strategic HR work 176 7.3.4 Summary and discussion on HR work 177 7.4 Conclusion 180 8 Realities of shipboard HR roles 182 8.1 Introduction 182 8.2 Roles of the HR function 182 8.2.1 Compliance and enforcement function 183 8.2.2 Representative of management 184 8.2.3 Strategic partner 185 8.2.4 Functional expert 186 8.2.5 Representative of employees 187 8.2.6 Human capital developer 188 8.2.7 HR leader 188 8.2.8 Group HR role 189 8.2.9 Summary and discussion on roles of the HR function 190 8.3 Working with the HR function 191 8.3.1 HR responsibilities of shipboard roles 192 8.3.2 HR function and the link to commercial realities 195 8.3.3 HR’s influence on supervisor’s autonomy on HR work 196 8.3.4 HR function to be aligned to business requirements 199 8.3.5 Summary and discussion on working with HR 202 8.4 Conclusion 204 9 Conclusion 206 9.1 Introduction 206 9.2 Summarising discussion of the findings of the study 207 9.2.1 Shoreside HR coping with the challenges of context 207 9.2.2 On the specifics of shipboard HR work 210 9.2.3 Realities of HR roles and relations 212 9.2.4 Summary 214 9.3 Theoretical implications 215 9.4 Strength and limitations 217 9.5 Significance and relevance for practice 220 5 9.6 Suggestions for further research 223 Bibliography 226 Appendix 1: Interview Guide 252 Appendix 2: Short Interview Guide 254 Appendix 3: HR Assessment – HR Questionnaire 255 Appendix 4: HR Assessment – Client Questionnaire 260 Word Count: 87,434 6 LIST OF FIGURES Figure 1 FDI inflows, global and by group of economies, 1995-2013 and projections, 2014-2016 (Billions of dollars). 24 Figure 2 Weber’s dimensions of bureaucracy 31 Figure 3 The human resource cycle 38 Figure 4 The Michigan approach 38 Figure 5 The Harvard approach of HRM 40 Figure 6 World: Inbound tourism. International Tourist Arrivals (million) 59 Figure 7 International Tourist Arrivals, million 59 Figure 8 Inbound tourism by purpose of visit, 2013 (share) 60 Figure 9 Growth of Worldwide Passengers Carried 64 Figure 10 Factors, influencing choosing of profession 103 Figure 11 HR priorities for the next two years 166 7 LIST OF TABLES Table 1 Annual cruise passengers worldwide and by region 63 Table 2 Worldwide market share, net revenue, passengers, ship count 66 Table 3 AIDA Cruises cruise ships 76 Table 4 Employees according to region in per cent 77 Table 5 Employees according to gender, occupation, contract and region 77 Table 6 Disney Cruise Line cruise ships 78 Table 7 Two cruise line companies and their market position 80 Table 8 Two cruise line companies’ cruise ships 80 Table 9 Officers and crew members 81 Table 10 List of interviewees 123 Table 11 Motivation for entering and continuing with a seafaring profession 140 Table 12 Functional key HR activities and dimensions of shipboard roles 192 8 ABSTRACT The University of Manchester Thomas Schlingemann Doctor of Business Administration (DBA) The Management of Human Resources on Cruise Ships: The Realities of the Roles and Relations of the HR Function 30 September 2015 This thesis aims to contribute to a deeper understanding of human resource management (HRM) within cruise ship organizations. The cruise ship industry is one of the fastest developing sectors within the tourism industry. Therefore, it should come as little surprise that the demand for seafaring human resources has also grown. Assuming that effective management of crew members is key to the effective operation of cruise ships, the specifics and challenges for HRM in this particular organisational context are identified and analysed as well as the realities of the roles and relations of the shipboard HR function examined. The present study is original in its theoretical approach, as it brings two approaches together which obviously are not linked. Ulrich’s model talks about roles and the study used aspects of this framework in terms of the position of HRM. Goffman’s concept of total institutions was also consulted in order to frame internal business- specific conditions and social relations. The combination of both approaches allows for the examination of HR roles and professional relations in a much more detailed and contextualised manner. The cruise industry is acknowledged as being under-researched, and this is all the more true for research on HRM in this specific sector.

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