I

EMPLOYEE RETENTION
(IN MARINE INDUSTRY)
IT’S PROBLEMS AND its SOLUTIONS

Table of Contents

CHAPTER 1: INTRODUCTION

1. Aims and objectives

2. Research questions
3. Hypothesis
4. Scope of the research
5. Justification
6. Definition of technical terms, concepts
- Background information
- Chapter by chapter summary

CHAPTER 2: LITRATURE REVIEW

1. Theories
2. Concepts
3. Ideas
4. Issues
5. Arguments
6. Findings
7. Methodological approaches

CHAPTER 3: METHODOLOGY

1. Methodological assumption
2. Data collection tools
3. Sampling technique
4. Techniques of analysis – tests to be used
 II

CHAPTER 4: FINDINGS / RESULTS

1. Descriptive / analytical
2. Quantitative / qualitative

CHAPTER 5: Analysis

1. Statistical analysis
2. Application of tests
3. Semi-o-logical or conversation analysis

CHAPTER 6: DISCUSSION

1. Degree of research questions answered

2. Degree of hypothesis test
3. Implications of research findings on concepts and theories
4. Implications of findings for researchers
5. How have the findings contributed to the literature
 III

EXECUTIVE SUMMARY

This study of mercantile marine industry’s attrition problem is to identify the root
cause(s) which, not in Pakistan but on the global level, has become a serious issue since
last, more or less, 4 decades. When ship owners decided to outsource its operations,
technical and as well as personnel, to independent management companies (although
managed, operated and owned by themselves) registered in Countries, known and called
as Flag Of Convenience, providing least stringent legal hassles in case of crew wages and
facilities, thus hiding behind a legal curtain of anonymity walking away Scot free if any
lawsuit filed against the vessel as a result of crew wage dispute, crew injury, crew death
oil pollution and/or marine accident.

During these four decades the idea of hiring marine officers and crew on contract basis,
instead of permanent employees, became very popular. The main theme behind such
change of policy from permanent to contract based employee system was to avoid any
payment of insurance claims as a result of injury and/or death, to a crew member while
working onboard, provident funds, gratuity, medical insurance to crew members, once
they sign off from the articles of agreement.

It is a very common sight, now a days, to see marine officers and as well as rating crews
jumping from company to company in the hope of getting better wages and facilities thus
having loyalty to wage scale rather then the vessel and or the management. This kind of
attitude has become very usual giving rise to various marine accidents and declination in
vessel’s commercial performance and poor maintenance of deck and engine machinery
onboard causing frequent detentions by Port State Control inspectors adding to agony of
ship owners resulting in huge commercial losses.

Professionalism has been replaced by commercialism, professional pride has been set
aside by routine work, initiative is gone giving rise to complacency and national crew has
been replaced by multi-national crew making it very difficult to communicate among
them-selves. This lacking gap of communication between the officers and crew is
diabolic in nature and has been the root cause in most of the marine accidents, where
orders were not passed clearly and/or not heard correctly. Whereas the same officers and
crew while working with the shipping companies on permanent basis had a very different
attitude towards owners, ship and their jobs.
 IV

The corner cutting by ship owners has basically increased the expenses rather than
reducing it, since the flow of officers and crew goes towards the one who is offering the
best. It rotates among companies, who are in dire straits, offers more then the others to
attract afloat staff and so on.

Hypothesis is developed on the issue at hand by trying to find a relationship between the
obvious reasons and the results apparent which speaks by itself about the problem at
hand. The questionnaire is developed with this issue in mind and same is basically
discussed during our interviews and asked in the questionnaire. Having a high turn-over
rate, companies will continue to loose, not only the money, but valuable time, good
employees, the output rate, and the edge over competitors as well. This very gravely
important issue, unless not taken seriously will keep on damaging the companies in the
un-noticed ways which, if not, capped is and continue to produce devastating results.

When they decide to deal with this issue through some adjustments and implementations
of the programs to lower the, even if not totally stopped, can see a significant change in
their cost and what might they actually save. The topic so selected for my research has
tremendous importance to the largest international industry which has been and is being
continuously neglected.

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 PAGE 1

CHAPTER 1

INTRODUCTION

1. Aims and objectives

2. Research questions

3. Hypothesis

4. Scope of the research

5. Justification

6. Definition of technical terms, concepts

a. Background information

b. Chapter by chapter summary

INTRODUCTION page 2

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.
 Page 3

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.

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

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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 TOFALL 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.
 Page 6
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

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.
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Chapter by Chapter Summary:

The basic idea and aim of this study was to undertake a research into problems being
faced by the shipping industry at large, and in particular in Pakistan, where since more or
less four decades attrition problem has emerged and gained momentum to the extent that
it has become a major issue.

All the shipping companies, management companies, manning agencies, around the
globe, are trying to cap this un-ending problem, although they themselves have started
this nuisance. The crews had been turned from permanent employees to contractual
employees, crew strength was reduced, larger ships were built but the crew strength did
not match up with the ship size, ships port of registry were changed from national flag to
flag of convenience to avoid stringent laws and regulations, multi-national crews were
hired – all the tricks were to save monies, cut corners to reduce expenses but it didn’t
help at all – rather things started deteriorating and cheap crews, lack of competency,
loyalty and professionalism gave way to more problems, blunders and mistakes resulting
in marine accidents involving loss of lives, property, cargo, danger to environment.

Based on above eye opening issues a hypothesis was developed and questionnaire was
prepared with an aim to tackle the problem with rather direct, simple and to the point
questions aiming to justify the research and as well as the validity of hypothesis. In
addition to the questionnaire two additional methodological approaches were practiced
with success to find the root causes, these were one-to-one interviews with the stalwarts
of shipping industry who have spent their ages in this profession and have a very deep
insight to its pros and cons, minuses and pluses, problems and benefits.

The last method was used to have group discussions with associates and colleagues to
discuss these problems on the table in a informal environment so that non of the hidden
aspects be left untouched.
 Page no 8

CHAPTER 2

LITRATURE REVIEW

1. Theories

2. Concepts

3. Ideas

4. Issues

5. Arguments

6. Findings

7. Methodological approaches
 Page 9

LITRATURE REVIEW

Theories:

Efficiency, effectiveness and survival of any organization anywhere, whether big or

small, depend on the recently discovered human capital. Thus acquisition of qualified
human resources, developing them and maintaining them becomes all the more
important. Employee turnover not only reduces the human capital in an organization but
also organizational productivity besides incurring the cost of acquiring human resources
for replacement and developing them. Hence increased emphasis is being laid on
retention of human resources now a days specially with the onset of recent Revolutions
such as Information Technology, which is labor intensive in nature, supported by
increased globalization.

Economic theory argues that performance based compensation contracts increase

employees’ incentives to exert effort, resulting in improved performance ( Milgrom and
Roberts 1992; Prendergast 1999). Previous empirical and laboratory studies on this topic
have compared across compensation schemes or examined how changes to a more
performance-sensitive incentive scheme influence employees’ compensation and
performance ( Waller and Chow 1985; Lazear 2000; Banker et al. 2001). Yet, no research
has addressed the impact of changes to less performance-sensitive plans on employee
performance. In the real world, many companies use or switch to less performance-
sensitive incentive schemes. Examples include Sears( Driscoll 1994), the shoe
manufacturing industry (Freeman and Kleiner 1998), and Fujitsu (Tanikawa 2001). Our
study contributes evidence on how a switch to a less performance-sensitive incentive
scheme affects an individual employee’s productivity and compensation. Furthermore,
we examine whether employee ability affects their productivity in light of the plan
change and which employee group is affected most by such a change.

The mission statement of any organization is the first and foremost tool to attract the
clients, customers, donors, funders, volunteers and employees to an organization. Experts
recognize that relying on the mission as management tool is an effective strategy to
improve performance (Drucker 1990, Garner 1989, Herman and Heimovics 1991,
Knauft, Berger and Grey 1991, Mason 1996, Pearce and David 1987, Sawhill and
Williamson 2001, Sheehan 1996). Warren Bennis, an authority on non profit
organizations, recognized the significance and importance of missions when he stated the
following: “ At the heart of every great group is a shared dream. All great groups believe
that … They could change the world … That belief is what brings the necessary cohesion
and energy to their work “ ( Hesselbein and Cohen 1999 p.317)
 Page 10

A mission statement identifies operational objectives, gives staff goals to direct its
behavior, describes performance standards, and speaks to organizational survival and
vision for the future ( Smith, Heady, Carson, and Carson 2001 ). The presence of a salient
mission statement reminds employees of the purpose of their work and helps managers
guide employees in the fulfillment of that mission. Several studies have investigated
employee perceptions of organizational values ( for example, Kristof 1996). Consistently,
those studies have found that a better match between employees and organizational
values predicts commitment and satisfaction ( O’ Reilly, Chatman, and Caldwell 1991).

Concepts:

A multitude of factors explains why employees remain in or leave an organization, but

scholars have consistently recognized employees’ expressed intentions to stay as a
reliable precursor to actual turnover and as reflective of employee commitment to the
organization ( Maertz and Campion 1998, Hom and Griffeth 1995, Hom and Kinicki
2001 ). The researchers investigated factors such as satisfaction with compensation,
supervisors, and coworkers, in addition to overall attitudes of satisfaction (Griffeth, Horn,
gaertner 2000). They found that overall satisfaction was negatively associated with
turnover intentions. Satisfaction with pay or compensation is of particular interest
because it may be the counterpart to relying on the mission to motivate and keep
employees (Preyra and Pink 2001). The nature of nonprofits places an expectation on
employees to work for the cause, not the paycheck. An additional consideration is that
employees’ dispositional and descriptive characteristics explain tendencies toward
positive and negative attitudes towards the organization. For example, age, tenure, and
position have all been shown to influence employees’ commitment and satisfaction
( Griffeth, Horn, and Gaertner 2000 ). Older, longtime, and managerial –level employees
tend to express more commitment to the organization.

awareness, agreement, and alignment at least three basic principles influence employee
attitudes towards the mission: awareness, agreement, and alignment. First the
organization’s purpose ( that is, its mission ) must be salient in the employees’ minds.
Are they and their coworkers aware of the organization’s mission and values? Second,
employees must agree with the expressed purpose and values of the organization. If
employees are going to work diligently for what may be lower compensation, they need
to perceive agreement between their values and the organization’s ( Kristof 1996 ). Third,
employees must perceive a connection between their work and the fulfillment of the
mission ( Mason 1996 ).
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Employee Retention philosophically, employee retention is important; in almost all cases,

it is senseless to allow good people to leave your organization. When they leave, they
take with them intellectual property, relationship, investments ( in both time and money ),
an occasional employee or two, and a chunk of your future. Employee Retention
Strategies helps organizations provide effective employee communication to improve
commitment and enhance workforce support for key corporate initiatives. We also
provide full support for your marketing-communication efforts by helping you build
customer loyalty by distinguishing and positioning your organization’s unique products
and services in today’s crowded marketplace. In addition to influencing employees, the
compensation plan can affect company performance by impacting recruitment and
retention ( Stiglitz 1975; Salo and Salop 1976; Demski and Feltham 1978; Milgrom and
Roberts 1992). For example, performance based compensation contracts attract and retain
high performers and differtiate high from low performers (e.g., Baron and Kreps 1999;
Banker et al. 2001). A company benefits when low-performance employees leave, but
suffers a setback when high-performance employees depart. Thus it is important to
consider who will join /leave the company when the performance sensitivity of the
compensation contract is changed.

Ideas:

A strong retention strategy becomes a powerful recruitment tool: Effective employee

retention is a systematic effort by employers to create and foster an environment that
encourages current employees to remain employed by having policies and practices in
place that address their diverse needs. A strong retention strategy becomes a powerful
recruitment tool. Employee retention matters, as, organizational issues such as training
time and investment, costly candidates etc., are involved. Hence , failing to retain a key
employee is a costly proposition for any organization. Various estimates suggest that
loosing a middle manager in most organizations, translates to a loss of up to five times
his salary. This might be worse for BPO companies where fresh talent is intensively
trained and inducted and then further groomed to the successive stages. In this scenario,
the loss of a middle manager can often prove dear.

The loss of a critical employee in an industry where there is no competition and/or it is

negligible, will not inflict remarkable loss as the replacement will be ready at hand but
where the competition is tough and cut throat, the loss of an employee will always be
higher and damaging, unless a plan has been devised to counteract such losses with
succession planning to replace the lost hand readily, but foremost the retention policies
are devised and practiced to avoid such embarrassing situations. Our study focuses on a
car dealership in Taiwan that changed its compensation scheme from being totally
commission-based to a mix of fixed
 Page 12

salary and lower commission rates. This change was in response to the requirement of the
1998 Taiwanese Labor Law amendment. Our database includes 4,392 pieces of detailed,
individual-level data (e.g., salespersons’ compensation, sales quantities, performance
ratings, and demographic information) and firm-level data (e.g., turnover rates, new
hires) for a period of 56 months.

Respect, Recognition and Rewards: These are known as 3 R’s of employee retention
strategy package. These three basic ingredients which correspond to the physiological,
social and economical needs of a human being are very important factors in winning the
heart, mind and soul of any individual. If we place them in order it makes a pyramid
where reward is placed at the bottom, recognition in the middle and respect at the top of
the 3 R’s pyramid. The order in which they are arranged or placed shows the importance
in retention strategy. By following this strategy organization is rewarded with Increased
Productivity, Reduced Absenteeism, A More Pleasant Work Environment & Improved
Profits.

A Steadfast Philosophy: Uses only research based, theory-supported approaches to

improving employee engagement. Avoided are the gimmicks such as employee of the
month, suggestion boxes, prizes or other “ carrots ”. While commonly used, these short
term fixes fail to produce genuine employee loyalty, more than 60 years’ of research tells
us so ( Kruthika Rao 2007).

Kei’s Employment Retention Wheel: The first step to improving employee retention is to
understand why employees stay with their current employer. Many “ experts ” dwell on
the reasons employees leave, which is not as important or revealing as the reasons they
stay. Companies have tried many different programs and perks to hold onto good
employees. However, studies show that these efforts are not enough to retain good
employees when the support that is needed to achieve job success is not adequate.

Kei’s employment retention strategy is based upon two primary beliefs:

1. It is difficult for employers to retain good employees if they don’t have a process
to hire the right people in the first place.

2. Retention processes must directly support the reasons that successful, satisfied
employees stay.

Kei’s concentration on the center of the employee retention wheel provides

employers with internet-based tools that give employees systematic, ongoing
support to be successful in their work and satisfied with their employment.
 page13

Issues:

Myths about Employee Morale Prevent Companies from Achieving Retention Success:
Despite years research that point to far different solutions, many companies use the
wrong tactics when trying to improve employee morale, satisfaction and retention. These
myths prevail, in part, because business have used these methods, however wrong, for a
very long time and have become used to trying the same ideas.

Myth # 1: People most often leave a company for more pay

Myth # 2: Incentive programs produce long-term profits and improve productivity and
morale.
Myth # 3: People don’t want more responsibility
Myth # 4: Loyalty is dead
Myth # 5: Improving employee satisfaction is expensive
Myth # 6: Employee satisfaction is “ fluff “
Myth # 7: Supervisors are the problem
Myth # 8: My company/industry/people are different

Arguments:

Factors That Affect Employee Retention: Most managers understand the importance of
employee retention and its impact on the overall health and vitality of the organization.
The importance of retaining top organizational talent will only increase over the coming
years as the massive cohort of baby boomers begin to reach retirement age making it easy
for younger employees to find work. Furthermore, this study goes beyond related prior
studies by investigating how employee ability affects their performance when a company
changes its compensation plan to a less performance sensitive one. We capture
employees ability by using both continuous variables (i.e., number of cars sold and
reciprocal of time to the first promotion since he/she joined the dealership) and
categorical variable (i.e., employee annual performance rating). The employee ability
measure not only helps us identify specific performance groups that are most affected by
the compensation plan change but also provides additional insights into causes of
employee separation after the plan change. These findings have managerial implications
since they can help top management anticipate possible impacts on incentives and efforts
of different employee groups as well as on employee recruitment and separation due to
the compensation plan change to a less performance sensitive one.
 Page 14

Findings:

- AT THE TIME OF RECRUITMENT

Select the right people through competency screening

Use psychometric tests to get people who can work at night and handle the
monotony
Offer an attractive, competitive, benefits package
Make clear of performance enhanced incentives and other benefits. Keep those
Promises, later

- AT THE OFFICE

An employee’s work must be communicated to him clearly and thoroughly

Give the employee necessary tools, time and training
page 13
Have a person to talk to each employee at regular intervals
The quality of supervision an employee receives is critical to employee retention
Provide the employee a stress free work environment
Make sure that employees know that their work is important for the organization
Employees must feel rewarded, recognized and appreciated
Work-life initiatives are important
Implement competency models, which are well integrated, with HR processes like
selection & recruitments, training, performance appraisal and potential appraisal

- NIGHT SHIFTS

Have doctors to advise them about health problems and the ways and means to
deal with them
Organize programs where people from other professions, who have night shifts
talk to BPO employees about their experiences
Organize training, counseling and development programs for employees
If needed, provide special lights in the office/workplace to ensure that their bodies
get sufficient vitamin D

Methodological Approaches:

Employee Recognition Increases Retention: The truth is that recognizing employees for
their hard work is one of the least expensive and easiest ways to improve the level of
employee retention in your organization. The return on investment for a manager’s time
 Page 15

and limited expenses can be incredible. Hollenbeck and Williams (1986) pointed out an
important distinction between the frequency and functionality of turnover. While the
former refers to the number of turnover separations, the latter refers to the implication of
those separations for an organization. Using a meta-analysis of 55 studies, William and
Livingstone (1994) reported that poorer performers tended to leave when the pat was
based on performance and to stay when it is not. The implications of their findings is that
performance-based compensation plans can lead to functional turnover. Lazear (2000)
reported that about one-third of improved performance can be attributed to selection
effects, i.e., less-productive workers leave the company and are replaced by more-
productive workers. In Banker et al. (2001), results showed that a performance-based
scheme in a retail firm attracted and retained more productive salespersons, while the
performance of the less productive sales staff declined before they left.

Efficiency, effectiveness and survival of any organization anywhere, whether big or

small, depend on the recently rediscovered human capital. Thus acquisition of qualified
human resources, developing them and maintaining them becomes all the more
important. Employee turnover not only reduces the human capital in an organization but
also organizational productivity besides incurring the costs of acquiring human resources
for replacement and developing them. Hence increased emphasis is being laid on
retention of human resources now a days especially with the onset of recent Revolutions
such as Information Technology, which is labor intensive in nature, supported by
increased globalization. Paper attempts to rediscover the Indian wisdom on HRM with
special reference to the causes of employee turnover and the retention strategies as spelt
out more than 5000 years ago in panchatantra, a classical work on management, yet very
relevant to this day.

Retention Strategies Help to Drive Revenue Growth: Employee satisfaction is essential to

any effective employee retention strategy – any good HR manager knows that. However
few managers think of the impact that employee satisfaction has on their customers and
ultimately on their company profits. One can assume that happier, more productive
employees will make more sales, treat customers better, and ultimately make more
money for the company, but few companies have analyzed this assumption to the extent
that Sears, Roebuck and Company has. Sears has put this common assumption to the
numbers test and the results are intriguing to say the very least. Companies design
compensation schemes not only to induce more employee effort but also to attract
potential employees. Recent studies suggest that performance-based incentive plans
effectively sort employees by ability (Lazear 2000; Banker et al. 2001). Selection effects
include recruiting and separation effects. The former relates to the type of employees who
 Page 16

join the company and the latter to the type of employees who leave. Lazear (200) showed
that contracts with higher piece rates attract high-ability employees. In a review paper,
Prendergast (1999) argued that compensation contracts are important means for a
company to recruit more capable workers, since they will benefit more from a
performance-sensitive compensation plan than the less capable will. In turn, the more
capable will be more likely to be attracted to the company than the less capable;
therefore, the company will have a higher percentage of high performers.

Employee Turnover and Retention Strategies: Panchatantra(an Indian ideology), rich in

human resource management ideas, emphasizes the role of human capital and identifies
the reasons as to why employees leave an organization and thereby point out, by
inference and implication, the strategies, both direct and indirect, as to how to retain
them. It declares that the employees, if alive and kept well, will stand by the management
even in the face of a disaster. Hence it advocates that the management should look after
the well being (welfare) of the employee well.

It states that it is a natural tendency in people to hate the have-nots even if educated,
efficient and well-serving and hence the management should take care not to hate the
poor employees. It also asserts that doing a job just for filling the belly is no job at all,
hence the management should not treat the employees with the mind-set that they are
working for filling their belly. It also reiterates the purpose of life as showing loving
kindness to all and serving for the living of many, not merely answering the call of belly,
thus the management should show loving kindness to all employees.
 Page17

CHAPTER 3

METHODOLOGY

1. Methodological assumption

2. Data collection tools

3. Sampling technique

4. Techniques of analysis – tests to be used

METHODOLOGY Page 18

STEPS IN THE DEVELOPMENT OF RESEARCH PROJECT

SELECTION OF PROBLEM

REVIEW OF EXISTING RESEARCH AND THEORY

STATEMENT OF HYPOTHESIS OR RESEARCH

QUESTION

DETERMINATION OF APPROPRIATE METHODOLOGY

AND RESEARCH DESIGN

DATA COLLECTION

ANALYSIS AND INTERPERTATION OF DATA

PRESENTATION OF RESULTS

REPLICATION
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Methodological assumption:

It focuses on analysis of the methods used for gaining the data. In normative paradigms,
scientific method, quantitative is used to observe the objects. It uses mathematics
calculation to generalize the finding and test the theory. In contrast, an interpretive
paradigm uses observation, fieldwork note to investigate the object. In short, an
interpretive paradigm tends to use qualitative methods for observation. As a result, the
findings can be open to many interpretations. On the other hand, methodology in critical
theory tends to use both quantitative and qualitative approaches. Quantitative to control
the social setting when doing the actions and qualitative to observe the changes that
happened after the actions are given.

The objective of this study of mercantile marine industry’s attrition problem is to

identify the root cause(s) which, not in Pakistan but on the global level, has become a
serious issue since last, more or less, 4 decades. When ship owners decided to outsource
its operations, technical and as well as personnel, to independent management companies
(although managed, operated and owned by themselves) registered in Countries, known
and called as Flag Of Convenience, providing least stringent legal hassles in case of crew
wages and facilities, thus hiding behind a legal curtain of anonymity walking away Scot
free if any lawsuit filed against the vessel as a result of crew wage dispute, crew injury,
crew death oil pollution and/or marine accident.

Historical Fact that during these four decades the idea of hiring marine officers and crew
on contract basis, instead of permanent employees, became very popular. The main
theme behind such change of policy from permanent to contract based employee system
was to avoid any payment of insurance claims as a result of injury and/or death, to a crew
member while working onboard, provident funds, gratuity, medical insurance to crew
members, once they sign off from the articles of agreement.

It is a very common sight, now a days, to see marine officers and as well as rating crews
jumping from company to company in the hope of getting better wages and facilities thus
having loyalty to wage scale rather then the vessel and or the management. This kind of
attitude has become very usual giving rise to various marine accidents and declination in
vessel’s commercial performance and poor maintenance of deck and engine machinery
onboard causing frequent detentions by Port State Control inspectors adding to agony of
ship owners resulting in huge commercial losses.

Negative development, initiated by the ship owners, themselves, to hire officers and
crew on contract basis, the results has shown a decline in professionalism, loyalty and
training. Professionalism has been replaced by commercialism, professional pride has
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been set aside by routine work, initiative is gone giving rise to complacency and national
crew has been replaced by multi-national crew making it very difficult to communicate
among them-selves. This lacking gap of communication between the officers and crew is
diabolic in nature and has been the root cause in most of the marine accidents, where
orders were not passed clearly and/or not heard correctly. Whereas the same officers and
crew while working with the shipping companies on permanent basis had a very different
attitude towards owners, ship and their jobs. The corner cutting by ship owners has
basically increased the expenses rather than reducing it, since the flow of officers and
crew goes towards the one who is offering the best. It rotates among companies, who are
in dire straits, offers more then the others to attract afloat staff and so on.

Hypothesis is developed on the issue at hand by trying to find a relationship between the
obvious reasons and the results apparent which speaks by itself about the problem at
hand. The questionnaire is developed with this issue in mind and same is basically
discussed during our interviews and asked in the questionnaire. Having a high turn-over
rate, companies will continue to loose, not only the money, but valuable time, good
employees, the output rate, and the edge over competitors as well. This very gravely
important issue, unless not taken seriously will keep on damaging the companies in the
un-noticed ways which, if not, capped is and continue to produce devastating results.

When they decide to deal with this issue through some adjustments and implementations
of the programs to lower the, even if not totally stopped, can see a significant change in
their cost and what might they actually save. The topic so selected for my research has
tremendous importance to the largest international industry which has been and is being
continuously neglected.

“ EMPLOYEE RETENTION IN MARINE INDUSTRY, ITS PROBLEMS AND

SOLUTIONS “

The purpose of this study is to provide with a better and more clearer understanding of
employee retention strategies, adopted, or need to be adopted, by the shipping industry in
Pakistan. In order to reach this specific purpose a set of relevant, simple to understand
and easy to reply research questions are posed to the top management, supervisory level
and to the common employees to find the root cause of this serious problem faced by the
largest and the oldest industry.

1) The retention strategies adopted by various shipping companies across Pakistan.

2) Propose strategies that these companies can adopt to get a better, cheaper and long
lasting solution to this Herculean problem.
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3) To undertake analysis of job satisfaction through the questions posed to various

employee cadre across the organization and propose different solutions to increase
job satisfaction among the employees to achieve satisfactory employee retention.

Though the issues and options analyzed are with respect to Pakistani service providers,
the same may be employed across the globe as the issues and options remains the same
irrespective of place of operation, nationality of crew and nature of job.

For our research study the Organization under scrutiny is “ General Maritime Private
Limited” a group of companies engaged in diversified business activities related to
mercantile marine industry. This organization is quite large and old in this profession and
do have its pluses and minuses due to employee’s attrition. Strength of the company is
about 650 employees spread around various Geographical, Demographical, Catagorical,
Experiential sections giving wide range of qualitative data collection for our research
work. The recipients are planned to be from all three cadres of the employees and the
number of respondents are such that a true representation is available to form hypothesis.

Data Collection Tools:

In action research, data collection instruments are not standardized. They must be
designed specifically for each intervention, based on what is discovered in the field,
considering the constraints of the field setting, and in response to each setting. The fact
that tools differ or change also makes it more difficult to compare outcomes directly. To
deal with this problem, I tried to develop data collection tools that were flexible enough
to be reused. The data collection tools consisted of instruments that could document
action and changes.

- Previous records of various shipping companies personal department, having complete

data of joining and leaving of various officers and crew and study collected comprising
research papers searched through generals, text books, internet, Google Scholar,
www.scribd.com .

- One to one personal interviews with the top management people with very long
experience of association with shipping industry. The questions will be open ended to
extract as much feedback as possible to find the real reasons according to the respondent.
All these interviews, will later be compared to find the most common reasons that all the
respondents agree without question.

- Focus group discussion, if possible to arrange on their availability, of Marine Officers

who are on leave and waiting to join back. Two different sessions will be arranged at
different times so that any one concluded will help my research work and if both are done
it will be a bonus to my study and final conclusion.
 Page22

- A questionnaire for the ship and shore staff, that will be in the form of a well defined
close ended ( DICHOTOMOUS ) pattern of questions. These questionnaire forms will be
personally given to each member of the organization to have their independent replies.

The questionnaire forms have 66 different types of questions, covering 6 hypothesis

encompassing almost all the problems being faced by the industry. They are suitably
designed, easy to understand, easy to make decision and easy to reply for each and every
respondent(s) from every cadre of the industry.

To minimize doubtful replies and ease in data analysis of the problem at hand, the
questions are close ended (Dichotomous) and the respondent has to simply reply,
according to his knowledge of the organization in YES or NO.

The data collected of the shipping company’s personal records compared with the
management companies compiled to see the difference in attrition of staff before and
after the formation of these management companies.

Sampling Techniques:

Whenever you want to say something about a selected population, you may not be able to
observe every person, or every action, in that population. You select part of the whole,
which you call your sample, on which to make specific observations, so that you can
make general statements about the whole or population.

- How do you choose that sample?

- Do you ask every fifth person walking down a particular hallway?
- Will that bias your sample towards students taking those subjects taught in the
rooms in that hallway?
- Would that bias affect the results?

If you were asking questions where there might be significantly different answers from
respondents taking one subject, rather than another, then that method of sampling would
bias the result. It suggests that a random sample would be most valid.
 Page 23

- So how do you choose a sample that is random?

Here you might exercise your imagination, initiative and creativity.

- How much a proportion of the population should the sample be so that it is valid?

If you interview only ten people out of a population of several thousand, perhaps the
results would not be as valid as it might be if you interviewed a sample of one thousand.
This process is done when the researchers aims to draw conclusions for the entire
population after conducting a study on a sample taken from the same population. This is
the primary concern in statistical sampling. The sample obtained from the population
must be representative of the same population. This can be accomplished by using
randomized statistical sampling techniques or probability sampling like cluster sampling
and stratified sampling.

The reason behind representative-ness being the primary concern in statistical sampling is
that it allows the researcher to draw conclusions for the entire population. If the sample is
not representative of the population, conclusions cannot be drawn since the results that
the researcher obtained from the sample will be different from the results if the entire
population is to be tested.

Practicability of statistical sampling techniques allows the researchers to estimate the

possible number of subjects that can be included in the sample, the type of sampling
technique, the duration of the study, the number of materials, ethical concerns,
availability of the subjects/samples, the need for the study and the amount of workforce
that the study demands. All these factors contribute to the decisions of the researcher
regarding to the study design.

There are two types of sampling risks, first is the risk of incorrect acceptance of the
research hypothesis and the second is the risk for incorrect rejection. These risks pertain
to the possibility that when a test is conducted to a sample, the results and conclusions
may be different from the results and conclusions when the test is conducted to the entire
population.

The risk of incorrect acceptance pertains to the risk that the sample can yield a
conclusion that supports a theory about the population when it is actually not existent in
the population. On the other hand, the risk of incorrect rejection pertains to the risk that
the sample can yield a conclusion that rejects a theory about the population when in fact,
the theory holds true in the population.
 Page 24

Comparing the two types of risks, researchers fear the risk of incorrect rejection more
than the risk of incorrect acceptance. Consider this example; an experimental drug was
tested for its debilitating side effects. With the risk of incorrect acceptance, the researcher
will conclude that the drug indeed has negative side effects but the truth is that it doesn’t.
The entire population will then abstain from taking the drug. But with the risk of
incorrect rejection, the researcher will conclude that the drug has no negative side effects.
The entire population will then take the drug knowing that it has no side effects but all of
them will then suffer the consequences of the mistake of the researcher.

So on the basis of my chosen topic and industry it is imminent that I must select a sample
size not less than 40-50 people with various shipping companies, but as they are
associated to the same industry therefore there responses will be inline and valid to
authenticate my research. They are the “ EMPLOYEES ” which are subject of my
research. These mariners are continuously on the move i.e. today they are available,
tomorrow they may not be, as they may have gone back to join a ship in a company
where they got a better opportunity. Under these circumstances I have to get the
questionnaire filled up on the first opportunity, in one go, to complete my research. I have
to continuously track these mariners from the shipping companies to find out if they are
available.

Apart from these 40-50 people selected to fill up the questionnaire, which has been
prepared, keeping in mind the actual problems on which this research is undertaken, I
have selected few very senior mariners to have one to one interview to find, according to
them, the root causes of attrition in shipping industry. The abstract of these interviews
will be added to my research report for the readers to get the first hand knowledge.

Techniques of Analysis:

In most social research the data analysis involves three major steps, done in roughly this
order:

• Cleaning and organizing the data for analysis

• Describing the data
• Testing Hypotheses and Models
 Page 25

Data Preparation involves checking or logging the data in; checking the data for
accuracy; entering the data into the computer; transforming the data; and developing and
documenting a database structure that integrates the various measures.

Descriptive Statistics are used to describe the basic features of the data in a study. They
provide simple summaries about the sample and the measures. Together with simple
graphics analysis, they form the basis of virtually every quantitative analysis of data.
With descriptive statistics you are simply describing what is, what the data shows.

Inferential Statistics investigate questions, models and hypotheses. In many cases, the
conclusions from inferential statistics extend beyond the immediate data alone. For
instance, we use inferential statistics to try to infer from the sample data what the
population thinks. Or, we use inferential statistics to make judgments of the probability
that an observed difference between groups is a dependable one or one that might have
happened by chance in this study. Thus, we use inferential statistics to make inferences
from our data to more general conditions; we use descriptive statistics simply to describe
what's going on in our data.

In most research studies, the analysis section follows these three phases of analysis.
Descriptions of how the data were prepared tend to be brief and to focus on only the more
unique aspects to your study, such as specific data transformations that are performed.
The descriptive statistics that you actually look at can be voluminous. In most write-ups,
these are carefully selected and organized into summary tables and graphs that only show
the most relevant or important information. Usually, the researcher links each of the
inferential analyses to specific research questions or hypotheses that were raised in the
introduction, or notes any models that were tested that emerged as part of the analysis. In
most analysis write-ups it's especially critical to not "miss the forest for the trees." If you
present too much detail, the reader may not be able to follow the central line of the
results. Often extensive analysis details are appropriately relegated to appendices,
reserving only the most critical analysis summaries for the body of the report itself.

I have adopted qualitative research pattern based upon the focus group, as my main focus
is on the Marine Industry and its associated problems, which are better known to
the people connected with this industry only.
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Benefits/strengths of focus group discussions

• Group discussion produces data and insights that would be less accessible without
interaction found in a group setting—listening to others’ verbalized experiences
stimulates memories, ideas, and experiences in participants. This is also known as
the group effect where group members engage in “a kind of ‘chaining’ or
cascading’ effect; talk links to, or tumbles out of, the topics and expressions
preceding it”

• Group members discover a common language to describe similar experiences.

This enables the capture of a form of “native language” or “vernacular speech” to
understand the situation

• Focus groups also provide an opportunity for disclosure among similar others in a
setting where participants are validated. For example, in the context of workplace
bullying, targeted employees often find themselves in situations where they
experience lack of voice and feelings of isolation. Use of focus groups to study
workplace bullying therefore serve as both an efficacious and ethical venue for
collecting data

Statistics is considered by some to be a mathematical science pertaining to the collection,

analysis, interpretation or explanation, and presentation of data, while others consider it
to be a branch of mathematics concerned with collecting and interpreting data. Because
of its empirical roots and its focus on applications, statistics is usually considered to be a
distinct mathematical science rather than a branch of mathematics.

In applying statistics to a scientific, industrial, or societal problem, it is necessary to

begin with a population or process to be studied. Populations can be diverse topics such
as "all persons living in a country" or "every atom composing a crystal". A population
can also be composed of observations of a process at various times, with the data from
each observation serving as a different member of the overall group. Data collected about
this kind of "population" constitutes what is called a time series.

The concept of correlation is particularly noteworthy for the potential confusion it can
cause. Statistical analysis of a data set often reveals that two variables (properties) of the
population under consideration tend to vary together, as if they were connected. For
example, a study of annual income that also looks at age of death might find that poor
people tend to have shorter lives than affluent people. The two variables are said to be
correlated; however, they may or may not be the cause of one another. The correlation
phenomena could be caused by a third, previously unconsidered phenomenon, called a
lurking variable or confounding variable. For this reason, there is no way to immediately
infer the existence of a causal relationship between the two variables. (See Correlation
does not imply causation.)
 Page 27

A common goal for a statistical research project is to investigate causality, and in

particular to draw a conclusion on the effect of changes in the values of predictors or
independent variables on dependent variables or response. There are two major types of
causal statistical studies: experimental studies and observational studies. In both types of
studies, the effect of differences of an independent variable (or variables) on the behavior
of the dependent variable are observed. The difference between the two types lies in how
the study is actually conducted. Each can be very effective.

An example of an observational study is one that explores the correlation between

smoking and lung cancer. This type of study typically uses a survey to collect
observations about the area of interest and then performs statistical analysis. In this case,
the researchers would collect observations of both smokers and non-smokers, perhaps
through a case control study, and then look for the number of cases of lung cancer in each
group. Above example was quoted here to direct the reader towards the fact that this
research is undertaken to study the problems directly related to the mariners only, who
are working on ships as the floating staff. Therefore my research is focused towards the
people directly related and are in the fore front.

There are four types of measurements or levels of measurement or measurement scales

used in tatistics:

• nominal,
• ordinal,
• interval, and
• ratio.

They have different degrees of usefulness in statistical research. Ratio measurements

have both a zero value defined and the distances between different measurements
defined; they provide the

greatest flexibility in statistical methods that can be used for analyzing the data. Interval
measurements have meaningful distances between measurements defined, but have no
meaningful zero value defined (as in the case with IQ measurements or with temperature
measurements in Fahrenheit). Ordinal measurements have imprecise differences between
consecutive values, but have a meaningful order to those values. Nominal measurements
have no meaningful rank order among values.

Interpretation of statistical information can often involve the development of a null

hypothesis in that the assumption is that whatever is proposed as a cause has no effect on
 Page 28

the variable being measured.The best illustration for a novice is the predicament
encountered by a jury trial. The null hypothesis, H0, asserts that the defendant is
innocent, whereas the alternative hypothesis, H1, asserts that the defendant is guilty. The
indictment comes because of suspicion of the guilt. The H0 (status quo) stands in
opposition to H1 and is maintained unless H1 is supported by evidence "beyond a
reasonable doubt". However, "failure to reject H0" in this case does not imply innocence,
but merely that the evidence was insufficient to convict. So the jury does not necessarily
accept H0 but fails to reject H0.

Working from a null hypothesis two basic forms of error are recognised:

• Type I errors where the null hypothesis is falsely rejected giving a "false
positive".
• Type II errors where the null hypothesis fails to be rejected and an actual
difference between populations is missed.

Most studies will only sample part of a population and then the result is used to interpret
the null hypothesis in the context of the whole population. Any estimates obtained from
the sample only approximate the population value. Confidence intervals allow
statisticians to express how closely the sample estimate matches the true value in the
whole population.

Often they are expressed as 95% confidence intervals. Formally, a 95% confidence
interval of a procedure is any range such that the interval covers the true population value
95% of the time given repeated sampling under the same conditions. If these intervals
span a value (such as zero) where the null hypothesis would be confirmed then this can
indicate that any observed value has been seen by chance. For example a drug that gives
a mean increase in heart rate of 2 beats per minute but has 95% confidence intervals of -5
to 9 for its increase may well have no effect whatsoever.

The 95% confidence interval is often misinterpreted as the probability that the true
value lies between the upper and lower limits given the observed sample. However this
quantity is more a credible interval available only from Bayesian statistics.

Statistics rarely give a simple Yes/No type answer to the question asked of them.
Interpretation often comes down to the level of statistical significance applied to the
numbers and often refer to the probability of a value accurately rejecting the null
hypothesis (sometimes referred to as the p-value).
 Page 29

When interpreting an academic paper reference to the significance of a result when

referring to the statistical significance does not necessarily mean that the overall result
means anything in real world terms. (For example in a large study of a drug it may be
shown that the drug has a statistically significant but very small beneficial effect such that
the drug will be unlikely to help anyone given it in a noticeable way.)

Some well-known statistical tests and procedures are:

• Analysis of variance (ANOVA)

• Chi-square-test
• Correlation
• Factor analysis
• Mann-Whiteny U
• Mean square weighted deviation (MSWD)
• Pearson product-moment correlation coefficient
• Regression analysis
• Spearman’s rank correlation coefficient
• Student’s t-test
• Time series analysis
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CHAPTER 4

FINDINGS / RESULTS

1. Descriptive / analytical

2. Quantitative / qualitative
 Page 31

FINDINGS

Questionnaire

Questionnaire is the best process, method and mode to gather information of own choice.
The formation of questions is dependent upon the enormity, seriousness, significance and
importance of the problem for which this research is undertaken. Simplicity of questions
always helps the respondents to, understand and visualize it and provide a befitting
answer without any ambiguity and doubt thus helping the researcher to gather
information of his own choice without much of a problem. Keeping the above criteria in
mind these questions were so designed that they could shed light on multiple aspects of
problems faced by the shipping industry, not only in Pakistan but on global scene. The
questionnaire was carefully selected so that it can discuss various dilemmas surrounding
difficult situations faced by shipping industry. To cover all the aspects of problems a
reasonable sample size of 45 respondents were selected covering almost all the cadres of
shipping industry so that this problem could be viewed from all angles and a more
comprehensive conclusion could be made. The different aspects of problems are listed
below for easy reference of the reader:

1. All six hypotheses, developed on the basis of various myths surrounding the attrition
problem, can be easily verified with the help of answers received from respondents. Each
hypothesis has about 11 questions to support its validity in favor and/or in negation. With
the help of dichotomous questions which are being designed in such manner that every
cadre can easily understand and reply instantly.

2. Apart from these hypotheses, which are divided by carefully selected questions directly
related to specific problem, the other aspect is being viewed from age. Various age
groups are formed within the questionnaire to view this aspect and their answers are
recorded.

3. Another angle is also explored on the basis of experience to find out that how the
experience in shipping industry changes the perspective of mariners facing this problem.
The more the larger experience the larger is the horizon of thoughts and more specific the
replies will be.

4. The rank also plays a vital role in viewing this problem since with the rank the
exposure to many undeclared policies is facilitated which junior staff do not have. The
response to various questions changes with the rank and off course seniority.

5. The aspect of problem will entirely be different for different employment status
individuals such as permanent employees see it with a different angle as compared to an
employee on contractual basis.
 Page 32

6. The last angle brought into focus is the behavior change found in people serving
onboard ships as compared to people working ashore in offices. These two wheels of the
operations unless are not in synchronization with each other the ships operations become
very difficult to manage.

These factors, as described above, are explored through the questionnaire to find the
perspective of all groups in shipping industry that how they see this attrition problem and
what kind of solution they have in their mind.

Group Discussions

There were 3 different sessions arranged at various locations on convenience basis to

discuss the various, many and diversified problems being faced by shipping industry
specifically in Pakistan, which do reflect on international level in general. The decline of
shipping industry in 1970 was the base of multitude problems which our small and just
growing out of infancy, shipping industry suffered in the hands of the then democratically
elected government. The first blow was nationalization of shipping industry in Pakistan
which shattered the confidence of business community and since then nothing could
allure ship owners to invest back into this industry. If we see around, shipping is the back
bone of any countries economic growth. As by means of water-carriage a more extensive
market is opened to every sort of industry than what land-carriage alone can afford it, so
it is upon the sea-coast, and along the banks of navigable rivers, that industry of every
kind naturally begins to sub-divide and improve itself, and it is frequently not till a long
time after that those improvements extend themselves to the inland part of the country.

Following factors, reasons, motives, issues and causes could attribute to the attrition
problems in shipping industry in Pakistan:

1. Since 1970 the merchant fleet of Pakistan is on the decline and constantly
shrinking although the government had injected huge monies into buying new
ships but still the decline could not be arrested. For this reason new blood coming
into shipping industry went down and the existing officers and crew finding no
scope for expansion and as well as promotion left Pakistani fleet and joined
foreign vessels where they got promotions and as well as received high wages and
exposure to wide professional shipping experience.

2. The shrinking shipping fleet, consisting of old tonnage with same old
conventional methods of navigation, machinery and other equipment could not
offer any new technology to officers and crew, thus repelling away the new blood
into the backbone of economy.

3. Pakistan Marine Academy, an institute developed in 1960 at Juldia, Chittagong

then part of Pakistan could not cop up with the advancement in technological
advancements and thus had nothing new to offer to seaman and cadets receiving
training. This prestigious institute was taken over by Pakistan navy as a bread and
 Page 33

4. butter supplier for their retired officers who had no clue whatsoever as what
commercial shipping is? What are its needs and demands? What must be done to
stay at par with the global shipping industry in terms of growth, knowledge,
technology and diversification in specialized shipping advancement?

5. After its nationalization, shipping industry had been left to deteriorate by the
government despite suffering huge losses in payment of freights to all import and
export of cargoes which stands at US$ 1.8 Billion every year and increasing. By
having our own fleets this money could have been used in other industrial growth.

6. Pakistan is being blessed with a coast line of about 650 miles long with out any
navigational hazards which could hinder development of other deep water ports in
Balochistan and Sindh thus helping Pakistan in economic growth and providing
alternative entry and exit points for cargo distribution and off course numerous
job opportunities and technical growth of rural population.

Above factors are the direct causes of shipping industry decline in Pakistan and below are
the various reasons which came under discussion during our group discussion sessions
for attrition problems around the globe:

1. The Arab-Israel conflict of 1967 when Suez Canal was closed till 1979 and fuel
cost went rocketing high from 2 US$ per barrel to 48 US$ per barrel forced the
ship owners to consider cost cutting methods.

2. The ILO(International Labor Organization) and ITF(International Trade

Federation), on various complains and observations coming to lime light showing
deplorable condition of ships and slave like conditions prevailing onboard vessels
where crew are not given proper food, water, wages, medical treatment and living
conditions, started putting pressure on ship owners, through legal legislation
under UNO, to revise wage scales and other facilities which brought enormous
financial burden upon ship owners.

3. Ship owners in return trying to escape this legal suffocation found another legal
cover by giving their vessel to management companies who provided technical
and personal assistance to ship owners thus avoiding direct confrontation with
ILO & ITF.

4. Another step in this direction was provided by the flag of convenience, who
provided these private ship owners less stringent rules and regulations then their
own states where ships were initially registered.

5. Once these covers were provided the ship owners went into background under the
umbrella of legal anonymity.
 Page 34

6. These flag of convenience registry ports provided very soft rules to these ship
owners who in return paid small registry fee and enjoyed freedom of
accountability. With the increase of ships coming under their registry their income
increased and as well the pressure from the ship owners.

7. Management companies started hiring crews on contractual basis instead of

providing permanent job to crews onboard.

8. Management companies trying to squeeze bigger profits, demanded more from

ship owners and paid less to floating staffs.

9. Management companies started hiring high caliber and professional managers

from the shore industries who had no idea, exposure and experience of sea life.
These managers started putting pressure on floating staff for more and more
output simply forgetting the working conditions are entirely different at sea.

10. Further they started promoting fresh officers to higher ranks thus paying these
young officers first year wages instead of paying 10th year wages to a senior
officer.

11. Hiring fresh mariners and crew from small countries on low wages to save more
from their fixed management fee which ship owners paid per vessel.

12. It became very common sight to see many nationality crews working onboard
vessels. These mix crews started making life difficult onboard for the senior
officers since it became hard to communicate with them.

13. The flaws of communication gaps could only be observed in emergencies when
orders are not understood and not executed properly thus compounding the
situation from worse to worst.

14. Minimizing crew strength onboard vessels was another method of cutting costs,
which in return increased workload on remaining crews. Another factor added to
the misery was that the ship sizes increased many folds thus increasing workload
on each crew member.

15. All these steps although brought huge profits for the owners and as well as for the
managers in the beginning.

16. In the longer run these incompetent crews and young officers void of real
professional experience, exposure, lack of training, over work and fatigue started
crumbling under pressure and serious marine accidents started taking place
loosing life, property and cargoes at sea.

17. On the other hand now the afloat staff also jumps from company to company in
pursuit of better compensation. These young officers do not like to stay longer at
 Page 35

18. sea but collect money by opting for higher wages and either switch career or start
small scale business thus getting rid of high pressure job at sea.

19. This jumping from company to company for better compensation is causing lack
of loyalty among crew and the company. The job has become just a matter of
routine, void of professional pride.

20. Lack of professionalism gives rise to routine and routine gives rise to
complacency and this declines resourcefulness.

21. Although the short courses has become mandatory for all floating officers and
crew every 5 years, but the lack of will to work without the sense of belonging do
not produce results as desired by shipping companies.

22. The I.S.M. (International Ship Management) system has been introduced to avoid
blunders while performing various tasks onboard ships. Every job, task, work,
routine has documentary procedure which ship personnel has to follow but it has
been witnessed that these procedures are at times compromised to avoid delays
and are filled after the job has been performed and filed. There are so many forms
to be filled that it has become a nuisance for the floating staff, who complain that
already the crew size has been reduced by the companies and yet on top of it these
unending filling and filing of ISM forms has made the life more difficult.

23. Yet another mandatory requirement of I.S.P.S. (International Ship & Port
Security) law came in effect adding another burden on the floating staff who were
already over loaded with jobs.

24. Port State Control, an inspection body formed by the state where ships from
different countries are visiting. The port State Inspector under the law of land and
authority of the Ministry of Shipping has the authority and powers to board the
ship, inspect the log books, certificates, visit the engine room and navigating
bridge, store rooms, galley and other associated places, question any crew
member and if find anything, equipment, practice, working not up to the standard
or if the PSI is not satisfied can fine the vessel, or give grace period to rectify the
non conformity or detain the vessel till the problem is rectified if is effects the sea
worthiness of the vessel.

25. Young graduates finding better job opportunities in other professions rather than
joining sea and staying away from families and friends since the compensation
difference is not very big therefore they do not like to opt for a tough career at
sea.

26. Similarly the existing marine officers if getting new opportunities to work ashore
in shipping companies, finding good opportunities to switch career and/or joining
professional colleges for other professional education to switch career.
 Page 36

These group discussions gave me quite good information and insight to understand the
problems from various angles and aspects. Apart from these group discussions I had the
opportunity to talk one to one with many of my seniors, colleagues and junior officers
and followings were my findings.

One-to-one Interviews

1. Senior mariners who are at the twilight of there careers or rather serving shipping
on extended time are not very happy the way things turned around making life
difficult for the new comers and feel pity for them.

2. They had enjoyed the real marine life, although they didn’t have the help of all
these electronic gadgets around them on ship to help them find where they are at
this very moment. Just about 30-40 years back the biggest concern of the ship
captain was to find where he is in the open sea.

3. They had all the time in the world to relax and enjoy life at sea and as well as port
as compared to today’s fast track life where ships stay in port is minimized in
hours rather than days.

4. The communication between company and the ship was minimal due to high cost
of telegrams and for the same reasons the short codes were devised to deliver
maximum gist to the owners. With the introduction of electronics and satellite
communication position fixing and telephone, fax, telex, email systems came on
ships as well and now communication is not time bound. The captain may have to
reply to the email, or a telephone call, at 2 o’clock in the morning since it was the
office hour in ship manager’s office.

5. Senior officers, like Captain, Chief Officers and Chief Engineers do face
problems due to lack of professional approach among junior officers who tend to
rely on electronic gadgets more then conventional and fail safe instruments which
had helped them in thin and thick. Like if the satellite navigator fails due to fault
in it or at the earth station deliberately and/or un-deliberate error, like closure of
GPS system for commercial vessels during gulf war leaving ships without
position fixing at high seas, forcing them to revert back to old and conventional
system of shooting sun and stars through sextant for position fixing.

6. Due to multi-national crew onboard vessels, although cheaper, has given birth to
another nuisance of effective business communication. This painstaking delay in
passing of important commands during berthing, un-berthing, shifting, anchoring,
sailing, passing through narrow channels in low visibility, maneuvering in high
density traffic areas, negotiating river bends under pilot’s instructions and other
emergency situations where time is the essence to give and obey orders as and
 Page 37

7. when necessary. In such situations there is no time available to explain and/or

clarify let alone repeat them.

8. The multi-national crew tends to stick to there own kind and any little argument,
disagreement among crew can easily flare-up to larger conflict if not handled
immediately, swiftly and effectively. The language barrier among multi-national
crew is also an hindrance to smooth operations, for passing of instructions from
head of department to crew and as well as from crew to crew.

9. Salary difference placed among different nationalities is another initiative looser

among crew’s onboard vessels. Instances are on record that the salary of a foreign
Master onboard a Chinese vessel, with total Chinese crew, was more than double
in size to all collective crew wages. This huge and un-proportionate difference of
wages had a very apparent negative effect on the morale of crew who were not
willing to cooperate with that master and thus affecting the overall management
onboard vessel.

10. junior officers while interacting with crew’s of other nationalities or companies
do come to know the compensation size, various facilities provided, family
carrying permission onboard ships, telephone facilities, email access etc cause
them to loose interest in their job onboard, considering it to be unfair. Another jolt
is about the victualling allowance, i.e. the daily allowance given by the company
for the afloat staff per day to manage their food onboard. It has been witnessed
that this allowance difference is very prominent among large and small
companies.

11. All officers and crew tend to avoid their postings on old vessels where
maintenance work is to high and will take most of their time in upgrading of
vessel. Plus due to the age of vessel the vessel will be an easy target for the Port
State Inspectors, who can find many deficiencies easily, and normally target third
world country vessels. Such targeting do bring the names of officers in the black
list of not only the PSI but as well as the company who avoid re-hiring these Crew
members in future.

12. In national shipping companies, the vessels are normally on liner runs, means
having a particular route to follow on continuous basis. The crew members like to
get their postings on routes where they can buy electronic items cheaper and bring
back to their home port and sell at a profit. These activities hamper their
professional activities. Long term postings on such vessels and routes tend to
incline crew members to indulge in smuggling of contra-band and illegal items
having developed relations in foreign ports. At times smuggling of humans has
also been witnessed through press releases and news.
 Page 38

13. another nuisance of “STOWAYS” has made life very difficult for the mariners
onboard ships. These are unwelcome people who hide away on ships, to travel
illegally to other countries in search of better opportunities, while they are in port

14. for loading/discharging of cargoes or replenishing stores, food, water, and fuel for
the subject vessel. Once the vessel goes to high seas they are either discovered by
the crew or they themselves surrender. There are two kinds of STOWAYS. One
those who are professionals and know all the tricks of the trade. These guys do
not carry on them, any legal identity documents. The other kind who are
unprofessional and just took a chance to run away from their homeland for better
opportunity, they normally have some or the other document to prove their
nationality and identity.

The upkeep of these STOWAYS becomes the obligation of the ship owner and
ship staff to give proper food and facilities, and not allowed to be used as forced
labor onboard during their stay, till they are not returned to their home. The
professional STOWAYS since do not carry any documents become a permanent
resident onboard vessel since in absence of legal document they cannot leave the
vessel and must be declared in the crew list as a STOWAY. The immigration
authorities do not allow that person to be landed therefore that person to be kept
under strict guard and watch to avoid and legal hassle.

15. The last but the most dangerous of all is the piracy attacks on ships which has
turned into bloody battles between the unarmed ships crew striving for their lives
with the armed robbers, who board vessels take away whatever they can snatch
away. This nuisance is turning into a big business where armed gunboats are
being used to kidnap the whole vessels with crew, the property and the cargo,
against million of Dollars ransom demanded from the ship owners.

Get your employees to fall in love with your organization: How do you get your
employees fall in love with your organization? This is a great question. Some recently
conducted research lists these Top Ten Strategies.
 Page 39

1. TREAT YOUR EMPLOYEES LIKE YOU TREAT YOUR MOST VALUABLE

CLIENTS

2. GET YOUR EMPLOYEES TO “ FALL IN LOVE “ WITH YOUR

ORGANIZATIONCAPTURE THE HEARTS OF YOUR WORKFORCE WITH:
COMPELLING VISION / BALANCE / CELEBRATION-FUN, OPEN
COMMUNICATION, CREATE PARTNERSHIP, DRIVE LEARNING,
EMENCIPATE ACTION.

3. STRONG RETENTION STRATEGIES BECOME STRONG RECRUITING

ADVANTAGES

4. RETENTION IS MUCH MORE EFFECTIVE WHEN YOU PUT THE RIGHT

PERSON INTO THE RIGHT JOB. KNOW THE JOB! KNOW THE
EMPLOYEE AND THEIR MOTIVATIONS.

5. MONEY IS IMPORTANT BUT IT IS NOT THE ONLY REASON PEOPLE

STAY WITH AN ORGANIZATION

6. EMPLOYEE COMMITTEES TO HELP DEVELOP RETENTION

STRATEGIES IS A VERY EFFECTIVE STRATEGY

7. LEADERSHIP MUST BE DEEPLY INVESTED IN RETENTION

8. RECOGNITION, IN VARIOUS FORMS, IS A POWERFUL RETENTION

STRATEGY

9. REMEMBER THE “ FUN FACTOR ‘ IS VERY IMPORTANT TO MANY

EMPLOYEES

10. KNOW THE TRENDS IN BENEFIT PACKAGES. DO YOUR TO OFFER THE

ONES YOUR EMPLOYEES NEED

Text books on HRM suggest that retention problem is caused by (i) organizational factors
( such as inappropriate organizational culture and values, devaluation of people, barriers
to the use of individual capabilities, lack of respect for people, lack of trust, lack of
visionary leadership, lack of effective management, ignoring employee ideas, lack of
open and honest communication, improper decision-making, absence of job continuity
and security, etc; (ii) lack of competitive compensation and rewards (such as competitive
pay, competitive benefits, performance linked compensation recognizing performance
differences, etc; (iii) inappropriate
 Page 40

job design and work (such as inadequate selection screening efforts, lack of good
working conditions, etc; (iv) lack of safe working environment, lack of work flexibility,
organizational workload pressure, etc; (v) lack of good employee relationships in the
organization (such as reasonableness in human resource policies, absence of fairness of
disciplinary actions, inappropriate means used to decide work assignment and
opportunities, unreasonably restrictive policies, inconsistent application of policies,
inadequate supervisory or management support, poor relationship with co-workers and
their support, etc; (vi) attractiveness of overseas migration, entrepreneurial opportunities
due to the availability of easy venture capital finding, stress, frequent traveling and hectic
schedule, lack of role models or mentors or advisors in work places, etc.

The prescriptions of text books or retention intervention are: (i) presenting the realistic
job preview during the recruitment process; (ii) matching applicants to jobs; (iii) effective
orientation and training after selection; (iv) giving competitive, fair and equitable pay; (v)
create opportunities for career advancement; (vi) fair and non-discriminatory treatment
and enforcement of HR policies; (vii) improving employee relations through looking
after employees’ interests, representation of employees in decision-making, encouraging
constructive criticism, protection of workers, etc; (viii) designing a suitable reward
system of competitive pay and incentive with appropriate timing, accuracy and
frequency; (ix) improving the quality of work life; (x) monetary motivation; (xi)
satisfying the psychological needs of the employees; (xii) implementing entrepreneurship
like program; (xiii) reducing job hopping by giving autonomy, flexibility and challenge at
work; (xiv) match worker with the work; (xv) job sculpting; (xvi) harmonious boss-
subordinate relationship; (xvii) developing the competency of the employee; (xviii)
developing the empowerment skills and self-control etc.

- SHORTEN THE FEED BACK LOOP

- OFFER A COMPETITIVE COMPENSATION PACKAGE
- BALANCE WORK AND PERSONAL LIFE
- BEWARE OF BURNTOUT
- PROVIDE OPPORTUNITIES FOR GROWTH AND DEVELOPMENT
- THE ABILITY TO PROVIDE INPUT AND BE TAKEN SERIOUSLY
- MANAGEMENT MUST TAKE THE TIME TO GET TO KNOW TEAM MEMBERS
- PROVIDE THE TOOLS AND TRAINING AN EMPLOYEE NEEDS TO SUCCEED
- MAKE USE OF A TEAM MEMBER’S TALENTS, SKILLS AND ABILITIES
- NEVER THREATEN A TEAM MEMBER’S JOB OR INCOME
 Page41

Solution for the problem: There is no such word exists “ impossible “ in business
management, it can be difficult, late and slow to achieve but not outright unreachable.
Every problem has a solution which may vary from trade to trade, industry to industry,
situation to situation. A long lasting solution can only be achieved if root cause is
searched and taken care of. A few very basic solution probe methodologies are given
below:

- FINDING THE CAUSE OF ATTRITION

Have a survey among employees to find reasons for attrition. If possible, have
exit interviews to know the reasons for resignations. If a key employee resigns, it
should be taken up on a priority basis and the senior management should meet the
employee to discuss his reasons for leaving and evaluate whether his issues bear
merit and whether they can be resolved.

- WHAT CAN BE DONE

Though, it is impossible to scrap problems total, there are certain ways by which
BPO managements can tackle attrition. Since every organization is unique, these
companies need to develop innovative ways to tackle these problems.

Study Suggests Employees Leave Bosses, Not Jobs: It has been said more than once, and
for good reason, that employees leave their bosses – not their jobs. A Florida State
University study scheduled for full release in the Fall - 2007 issue of Leadership
Quarterly confirms this.

The study shows that 40% of employees work for bad bosses based on survey results.
The reasons that employers score poorly are varied and many:
- 39% of workers said their supervisor failed to keep promises

- 37% indicated their supervisor failed to give credit when due

- 31% said their supervisor gave them “ silent treatment” during the past year

- 27% report their supervisor made negative comments about them to other employees
or managers

- 24% indicated their boss invaded their privacy

- 23% said their supervisor blamed other to cover up personal mistakes or minimize
embarrassment.
 Page 42

Study emphasizes those following one liner suggestions, although looks to be

meaningless in the face of a gigantic problem which can become out of control, but at
the right place, in the right manner, if these are remembered and used in-time, these
small remedies can play wonders among employees and can divert head-on collision.

- Employees support in the face of disaster

- Do not hate poor employees

- To work for the call of belly is no job at all

- Show kindness: Purpose and Gain of Life

- Respect employees’ self-esteem for great works

- Fire the crooks and the Undeserving

- Prefer a tried employee than a new one

- Create bonds of union between employees and management

- Fasten and bind employees with hearts

- Little things matter

- Management effectively

- Employee flight is a trap

- Do not forget to pay the salary on the day

- Honor employee as a retention strategy

- Honor is the secret of the General Health of an Organization

- Institute a reward system to retain the employees

- Small rewards also matter

- Gratify the pride of the employee

- Honor employees generously as an insurance

- Never withhold honor or pay mistakenly

- Never dishonor after honoring

- Never defame a commended employee in public

 Page 43

- Never shame an employee

- Never insult achievers

- Match worker with work and position

- Do not ignore the qualities of the workers

- Give autonomy to employees to motivate

- Give due credit for all achievements

- Cherish the employee by job security

- Pet, pamper and love employees

- Help remove employee sufferings to see the projects through

- Great people work for a cause

- Differentiate employees justly

- Employees leave quickly when the management grows absurd

 Page 44

CHAPTER 5

ANALYSIS

1. Statistical analysis

2. Application of tests

3. Semi-o-logical or conversation analysis

 Page 45

Statistical analysis:

Following are the graphical results of my questionnaire on the basis of:

1. Six different hypothesis mentioned and discussed earlier in this research study.

These hypothesis are basically my claim that compensation, just policies, succession
planning, multi-national crew, rewards and perks, incentives, correct selection policy,
social welfare, and permanent job offer can reduce, if not totally eliminate, the attrition
problem across the marine industry. In these six hypothesis employee retention is the
dependent variable and all other variables mentioned above are independent variables
affecting the resultant.

2. On the basis of individual respondents, which are 45 in number.

There are 45 respondents carefully selected according to my research need so that a

complete parameter of shipping industry is covered and worthwhile representation is
available in my research. These respondents are and can easily be identified as belonging
to nine different groups of professionals. These professionals are technical managers,
operation managers, personnel managers, captains, chief officers, second officers, chief
engineers, second engineers and third engineers. 5 members are selected at random from
each group.

3. On the basis of designation, rank, age, experience, afloat/ashore, seniority, and the
permanent and contractual employees.

As mentioned above, these nine groups are sub-divided into various sub-groups in respect
of age, experience, designation, rank, professional expertise, seniority, ashore, afloat,
permanent and/or contractual employee.

4. Cross tabulation within the hypothesis on the basis of above mentioned cadres to
get the various aspects judged simultaneously to authenticate my results on the
basis of these findings.

Graphical analysis for each hypothesis in respect of all independent variables is also
conducted and results included in the findings for the readers to have a more clearer
picture of the research.

5. Measure of dependent variable under the influence of independent variables.

The final outcome in the shape of graphical display of responses are the result of
influences made by independent variables on the dependent variable.

Q Q Q Q Q Q Q Q Q Q varianc
7 14 15 28 29 38 39 43 51 64 yes no mean e
 0.0196
resp1 1 1 1 1 1 1 1 7 3 7.93 57
0.0196
resp2 1 1 1 1 1 1 1 7 3 7.93 57
0.0196
resp3 1 1 1 1 1 1 1 7 3 7.93 57
0.0196
resp4 1 1 1 1 1 1 1 7 3 7.93 57
0.0260
resp5 1 1 1 1 1 1 1 1 1 9 1 7.93 2
0.0196
resp6 1 1 1 1 1 1 1 7 3 7.93 57
0.0196
resp7 1 1 1 1 1 1 1 7 3 7.93 57
0.0196
resp8 1 1 1 1 1 1 1 7 3 7.93 57
0.0196
resp9 1 1 1 1 1 1 1 7 3 7.93 57
resp1 0.0260
0 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp1 0.0196
1 1 1 1 1 1 1 1 7 3 7.93 57
resp1 0.0196
2 1 1 1 1 1 1 1 7 3 7.93 57
resp1 0.0196
3 1 1 1 1 1 1 1 7 3 7.93 57
resp1 0.0196
4 1 1 1 1 1 1 1 7 3 7.93 57
resp1 0.0260
5 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp1 0.0260
6 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp1 0.0260
7 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp1 0.0196
8 1 1 1 1 1 1 1 7 3 7.93 57
resp1 0.0196
9 1 1 1 1 1 1 1 7 3 7.93 57
resp2 0.0260
0 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp2 0.0001
1 1 1 1 1 1 1 1 1 8 2 7.93 11
resp2 0.0260
2 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp2 0.0260
3 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp2 0.0260
4 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp2 0.0260
5 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp2 0.0196
6 1 1 1 1 1 1 1 7 3 7.93 57
resp2 0.0260
7 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp2 0.0260
8 1 1 1 1 1 1 1 1 1 9 1 7.93 2
resp2 0.0196
9 1 1 1 1 1 1 1 7 3 7.93 57
resp3 1 1 1 1 1 1 1 1 1 1 10 0 7.93 0.0973
0 84
resp3 0.0001
1 1 1 1 1 1 1 1 1 8 2 7.93 11
resp3 0.0001
2 1 1 1 1 1 1 1 1 8 2 7.93 11
resp3 0.0001
3 1 1 1 1 1 1 1 1 8 2 7.93 11
resp3 0.0001
4 1 1 1 1 1 1 1 1 8 2 7.93 11
resp3 0.0001
5 1 1 1 1 1 1 1 1 8 2 7.93 11
resp3 0.0001
6 1 1 1 1 1 1 1 1 8 2 7.93 11
resp3 0.0001
7 1 1 1 1 1 1 1 1 8 2 7.93 11
resp3 0.0001
8 1 1 1 1 1 1 1 1 8 2 7.93 11
resp3 0.0001
9 1 1 1 1 1 1 1 1 8 2 7.93 11
resp4 0.0001
0 1 1 1 1 1 1 1 1 8 2 7.93 11
resp4 0.0973
1 1 1 1 1 1 1 1 1 1 1 10 0 7.93 84
resp4 0.0196
2 1 1 1 1 1 1 1 7 3 7.93 57
resp4 0.0196
3 1 1 1 1 1 1 1 7 3 7.93 57
resp4 0.0196
4 1 1 1 1 1 1 1 7 3 7.93 57
resp4 0.0001
5 1 1 1 1 1 1 1 1 8 2 7.93 11
35. 7.9 0.8818
yes 45 15 43 29 45 45 42 45 15 33 7 3 3
2.0
no 0 30 2 16 0 0 3 0 30 12 9.3 7
 HYPOTHESIS NO:1 QUESTION NO: 7, 14, 15, 28,
29, 38, 39, 43, 51, 64 (BAR SHOWN BELOW ARE
RESPONSES FOR EACH OF THESE 10 QUESTION
50

45

40

35

30

Series1
25 Series2

20

15

10

0
1 2 3 4 5 6 7 8 9 10
EMPLOYEE RETENTION IS DIRECTLY RELATED TO
COMPENSATION OFFERED BY THE ORGANIZATION

HYPOTHESIS 1: EMPLOYEE RETENTION IS DIRECTLY RELATED TO

COMPENSATION OFFERED BY THE ORGANIZATION.
 Series1
HYPOTHESIS NO:1 TOTAL NO: OF YES'S Series2
RESPONDENT-WISE AGAINST TOTAL 10 Series3
QUESTIONS Series4
TOTAL 10 QUESTIONS 12
Series5
Series6
10 Series7
8 Series8
Series9
6
Series10
4 Series11
2 Series12
Series13
0
Series14
1
Series15
0-45 RESPONDENT Series16
Series17
Series18
0-10 QUESTIONS

H
YPO
THE
SISNO
:1R
ESU
LTSDE
RIVEDON
V
ARIA
BLES

1
0
8
6 S
erie
s1
4 S
erie
s2
2
0
1 2 3 4 5 6
1
=SE
NIO
R,2
=JUNIO
R,3
=AFL
O A
T,4=
A S
HORE,
5=
P ER
MANEN
T,6=
C O
NTRACT
UA L
0-10 QUESTIONS

A
VER
AGERE
SUL
T O
FHY
POT
HES
IS1ON1
0
QU
ESTIO
NS

1
0

6 S
erie
s1
4 S
erie
s2

0
1
Y
ES=
7.9
3QU
EST
ION
S N
O=2
.07Q
UES
TIO
NS
0-45 RESPONDENTS

A
VER
AGERE
SUL
TOFHY
POT
HES
IS1BA
SIS
ALLRE
SPONDE
NTS

4
0

3
0
S
er
ies
1
2
0
S
er
ies
2
1
0

0
1
Y
ES=
35.7RE
SPO
NDE
NTS,N
O=9.3
RES
PON
D ENT
S
 0 X^2 85.2 C.V. 443.6

HYPOTHESIS 1

Ho : EMPLOYEE RETENTION IS DIRECTLY RELATED TO THE COMPENSATION

OFFERED BY THE ORGANIZATION.

H1 : EMPLOYEE RETENTION IN NOT DIRECTLY RELATED TO THE

COMPENSATION OFFERED BY THE ORGANIZATION

THE CHI-SQUARE TEST PERFORMED:

X^2 = 85.2
CRITICAL VALUE = 443.6
CONFIDENCE LEVEL = 0.05 ( 95%)

RESULT: There is enough evidence to support the claim that “ employee retention is
directly related to the compensation offered by the organization “
 q2 q2 q2 q3 q4 q4 q4
q1 q2 q3 q5 2 3 4 0 0 6 7 yes no MEAN VAR
0.0076
resp1 1 1 1 1 1 1 1 1 1 9 2 9.58 45
0.0076
resp2 1 1 1 1 1 1 1 1 1 9 2 9.58 45
0.0076
resp3 1 1 1 1 1 1 1 1 1 9 2 9.58 45
0.0076
resp4 1 1 1 1 1 1 1 1 1 9 2 9.58 45
0.0076
resp5 1 1 1 1 1 1 1 1 1 9 2 9.58 45
0.0076
resp6 1 1 1 1 1 1 1 1 1 9 2 9.58 45
0.0076
resp7 1 1 1 1 1 1 1 1 1 9 2 9.58 45
0.0076
resp8 1 1 1 1 1 1 1 1 1 9 2 9.58 45
0.0458
resp9 1 1 1 1 1 1 1 1 1 1 1 11 0 9.58 27
resp1 0.0567
0 1 1 1 1 1 1 1 1 8 3 9.58 36
resp1 0.0076
1 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp1 0.0076
2 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp1 0.0076
3 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp1 0.0076
4 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp1 0.0458
5 1 1 1 1 1 1 1 1 1 1 1 11 0 9.58 27
resp1 0.0076
6 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp1 0.0567
7 1 1 1 1 1 1 1 1 8 3 9.58 36
resp1 0.0076
8 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp1 0.0076
9 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp2 0.0458
0 1 1 1 1 1 1 1 1 1 1 1 11 0 9.58 27
resp2 0.0076
1 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp2 0.0040
2 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp2 0.0040
3 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp2 0.0040
4 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp2 0.0040
5 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp2 0.1512
6 1 1 1 1 1 1 1 7 4 9.58 82
resp2 0.0458
7 1 1 1 1 1 1 1 1 1 1 1 11 0 9.58 27
resp2 0.0040
8 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp2 1 1 1 1 1 1 1 1 1 9 2 9.58 0.0076
9 45
resp3 0.0458
0 1 1 1 1 1 1 1 1 1 1 1 11 0 9.58 27
resp3 0.0040
1 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp3 0.0040
2 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp3 0.0040
3 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp3 0.0040
4 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp3 0.0040
5 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp3 0.0040
6 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp3 0.0458
7 1 1 1 1 1 1 1 1 1 1 1 11 0 9.58 27
resp3 0.0040
8 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp3 0.0040
9 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp4 0.0040
0 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp4 0.0458
1 1 1 1 1 1 1 1 1 1 1 1 11 0 9.58 27
resp4 0.0040
2 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp4 0.0040
3 1 1 1 1 1 1 1 1 1 1 10 1 9.58 09
resp4 0.0076
4 1 1 1 1 1 1 1 1 1 9 2 9.58 45
resp4 0.0076
5 1 1 1 1 1 1 1 1 1 9 2 9.58 45
39. 9.5 0.7949
yes 45 45 43 43 45 43 41 26 44 41 15 2 8 55
5.8 1.4
no 0 0 2 2 0 2 4 19 1 4 30 2 2
 HYPOTHESIS NO:2 QUESTIONS 1, 2, 3, 5, 22, 23,
24, 30, 40, 46, 47(BARS SHOWN BELOW ARE
RESPONSES TO THESE 11 QUESTIONS )
50

45

40

35

30

Series1
25
Series2

20

15

10

0
1 2 3 4 5 6 7 8 9 10 11
HYPOTHESIS NO:2 EMPLOYEE TURN-OVER CAN BE REDUCED BY
ADOPTING TO THE CORRECT SELECTION, JUST POLICIES AND
PRACTICES
 Series1
HYPOTHESIS NO:2 TOTAL NO: OF YES'S
Series2
RESPONDENT-WISE AGAINST ALL 11 QUESTIONS Series3
Series4
12
Series5
10 Series6
0-11 8 Series7
6 Series8
Series9
4
Series10
2 Series11
0 Series12
1 Series13
Series14
0-45 RESPONDENTS
Series15
Series16
0-11 QUESTIONS

H
YPO
THE
SISNO
.2R
ESU
LTSDE
RIV
ED O
N
V
ARIA
BLE
S

1
2
1
0
8
S
erie
s1
6
S
erie
s2
4
2
0
1 2 3 4 5 6
1
=SE
NIO
R,2
=JUNIO
R,3
=AF
LOAT,4
=AS
HORE,
5=
PE RM
ANAN
T,6
=C O
NTR
ACT
UA L
0-11 QUESTIONS

A
VER
AGERE
SUL
T O
FHYP
OTHES
ISNO:2O
N
T
HEBAS
ISOFQU
E ST
ION
S

1
2
1
0
8
S
erie
s1
6
S
erie
s2
4
2
0
1
Y
ES=
9.5
8 N
O=1
.42
0-45 RESPONDENTS

A
VER
AGERE
SUL
T O
FHY
POT
HES
IS2ONB
ASIS
OFRE
SPONDEN
TS

5
0

4
0

3
0 S
er
ies
1
2
0 S
er
ies
2

1
0

0
1
Y
ES=
39.1
8,N
O=5
.82
 0 X^2 142.4 C.V. 443.6

HYPOTHESIS 2

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

CORRECT SELECTION, JUST POLICIES AND PRACTICES.

H1 : EMPLOYEE TURN-OVER CANNOT BE REDUCED BY ADOPTING TO THE

CORRECT SELECTION, JUST POLICIES AND PRACTICES.

THE CHI-SQUARE TEST PERFORMED:

X^2 = 142.4
CRITICAL VALUE = 443.6
CONFIDENCE LEVEL = 0.05 ( 95%)

RESULT: There is enough evidence to support the claim that “ employee turn-over can
be reduced by adopting to correct selection, just policies and practices “
 q1 q1 q1 q1 q2 q2 q3 q3 q4 q4
q8 6 7 8 9 0 1 2 5 1 2 yes no MEAN VAR
0.0016
resp1 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
0.0016
resp2 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
0.0016
resp3 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
0.0016
resp4 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
0.0016
resp5 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
0.0016
resp6 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
0.0016
resp7 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
0.0016
resp8 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
0.0016
resp9 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp1 0.0121
0 1 1 1 1 1 1 1 1 1 1 10 1 10.73 11
resp1 0.0016
1 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp1 0.0016
2 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp1 0.0016
3 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp1 0.0016
4 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp1 0.0016
5 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp1 0.0016
6 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp1 0.0680
7 1 1 1 1 1 1 1 1 1 9 2 10.73 2
resp1 0.0016
8 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp1 0.0016
9 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 0.0016
0 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 0.0016
1 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 0.0016
2 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 0.0016
3 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 0.0016
4 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 0.0016
5 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 0.3162
6 1 1 1 1 1 1 1 7 4 10.73 02
resp2 0.0016
7 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 0.0016
8 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp2 1 1 1 1 1 1 6 5 10.73 0.5084
9 75
resp3 0.0016
0 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
1 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
2 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
3 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
4 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
5 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
6 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
7 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
8 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp3 0.0016
9 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp4 0.0016
0 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp4 0.0016
1 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp4 0.0016
2 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp4 0.0016
3 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp4 0.0016
4 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
resp4 0.0016
5 1 1 1 1 1 1 1 1 1 1 1 11 0 10.73 57
43. 10. 0.9727
yes 45 45 45 44 42 41 45 43 45 43 45 9 7 39
1.0 0.2
no 0 0 0 1 3 4 0 2 0 2 0 9 7
 HYPOTHESIS NO:3 QUESTIONS:
8,16,17,18,19,20,21,32,35,41,42

50

45

40

35

30

Series1
25
Series2

20

15

10

0
1 2 3 4 5 6 7 8 9 10 11
HYPOTHESIS NO:3 - RESPECT, ENCOURAGEMENT AND
SOCIAL WELFARE CAN MAKE EMPLOYEES TO FALL IN
LOVE WITH THE ORGANIZATION
 Series1
HYPOTHESIS NO:3 TOTAL NO: OF YES'S Series2
RESPONDENT-WISE AGAINST ALL QUESTIONS Series3
Series4
12 Series5

0-11 QUESTIONS
10 Series6
8 Series7
Series8
6 Series9
4 Series10
2 Series11
Series12
0
Series13
1
Series14
0-45 RESPONDENTS Series15
Series16
Series17
0-11 QUESTIONS

HY
POTHESISNO:3RESULTSDERIVEDON
VARIABLES

1
2
1
0
8
Se
rie
s1
6
Se
rie
s2
4
2
0
1 2 3 4 5 6
1
= SE
NIO
R,2
= J
U N
IOR
,3=AF
LOAT,4=ASHOR
E,
5=PERMANE
NT,6=CON
TRACTUAL
0-45 RESPONDENTS

A
VER
AGERE
SUL
T O
FHY
POTHESISNO
:3ON
BA
SISOFR E
SPON
D E
NTS

5
0

4
0

3
0 S
erie
s1
2
0 S
erie
s2

1
0

0
1
Y
ES=
43.9
1 N
O=1
.09
0-11 QUESTIONS

A
VER
AGERE
SUL
TOFHY
POTHE
SISNO
:3ON
BAS
ISOFAL
LQUEST
ION
S

1
2
1
0
8
S
er
ies
1
6
S
er
ies
2
4
2
0
1
Y
ES=
10.7
3 N
O=0
.2
7
 0 X^2 231.8 C.V. 443.6

HYPOTHESIS 3

Ho : RESPECT, ENCOURAGEMENTAND SOCIAL WELFARE CAN MAKE

EMPLOYEES TO FALL IN LOVE WITH THE ORGANIZATION.

H1 : RESPECT, ENCOURAGEMENT AND SOCIAL WELFARE CANNOT MAKE

EMPLOYEES TO FALL IN LOVE WITH THE ORGANIZATION.

THE CHI-SQUARE TEST PERFORMED:

X^2 = 231.8
CRITICAL VALUE = 443.6
CONFIDENCE LEVEL = 0.05 ( 95%)

RESULT: There is enough evidence to support the claim that “ Respect, encouragement
and social welfare can make employees to fall in love with the organization. “

q1 q1 q1 q1 q3 q3 q3 q3 q4 q6 q6 q6
0 1 2 3 1 4 6 7 4 3 5 6 yes no mean VAR
 0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
1.144
1 1 1 1 1 1 1 1 1 1 10 2 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
4.284
1 1 1 1 1 1 1 1 1 9 3 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
4.284
1 1 1 1 1 1 1 1 1 9 3 11.07 9
1.144
1 1 1 1 1 1 1 1 1 1 10 2 11.07 9
1.144
1 1 1 1 1 1 1 1 1 1 10 2 11.07 9
1.144
1 1 1 1 1 1 1 1 1 1 10 2 11.07 9
1.144
1 1 1 1 1 1 1 1 1 1 10 2 11.07 9
9.424
1 1 1 1 1 1 1 1 8 4 11.07 9
1.144
1 1 1 1 1 1 1 1 1 1 10 2 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
4.284
1 1 1 1 1 1 1 1 1 9 3 11.07 9
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 0.004
 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.864
1 1 1 1 1 1 1 1 1 1 1 1 12 0 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
1.144
1 1 1 1 1 1 1 1 1 1 10 2 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
1.144
1 1 1 1 1 1 1 1 1 1 10 2 11.07 9
0.004
1 1 1 1 1 1 1 1 1 1 1 11 1 11.07 9
41. 11. 48.80
25 45 45 45 32 45 40 45 41 45 45 45 5 1 05
0.9
20 0 0 0 13 0 5 0 4 0 0 0 3.5 3
 HYPOTHESIS NO:4 QUESTION NO:
10,11,12,13,31,34,36,37,44,63,65,66

50

45

40

35
0-45 RESPONDENTS

30

Series1
25
Series2

20

15

10

0
1 2 3 4 5 6 7 8 9 10 11 12
HYPOTHESIS NO:4 RIGHT INCENTIVES AND
SUCCESSION PLANNING CAN DEVELOP
LOYALTY, GROWTH AND PRODUCTIVITY IN
EMPLOYEES
 Series1
HYPOTHERSIS NO:4 TOTAL NO: OF YES'S Series2
RESPONDENT-WISE AGAINST ALL QUESTIONS Series3
Series4
14

0-12 QUESTIONS
Series5
12 Series6
10 Series7
8 Series8
6 Series9
4 Series10
Series11
2
Series12
0
Series13
1 Series14
0-45 RESPONDENTS Series15
Series16
Series17
0-12 QUESTIONS

H
YPO
THE
SISNO
:4R
ESU
LTSDE
RIVEDON
V
ARIA
BLES

1
4
1
2
1
0
8 S
erie
s1
6 S
erie
s2
4
2
0
1 2 3 4 5 6
1
=SE
NIO
R,2
=JUNIO
R,3
=AFL
O A
T,4=
A S
HORE,
5=
P ER
MANEN
T,6=
C O
NTRACT
UAL
0-45 RESPONDENTS

A
VERA
GER
ESUL
TOFH YP
O T
H E
S ISNO:4ON
BA
SISOFR E
SP OND ENTS

5
0

4
0

3
0 Se
rie
s1
2
0 Se
rie
s2

1
0

0
1
Y
ES=4
1.5 N
O=3
.5
0-12 QUESTIONS

A
VERA
GERESUL
TOFHYPOTHESISNO:4ON
BA
SISOF12Q UESTIO
NS

1
2
1
0
8
Se
rie
s1
6
Se
rie
s2
4
2
0
1
Y
ES=1
1.0
7 N
O=0
.93
 0 X^2 200.7 C.V. 443.6

HYPOTHESIS 4

Ho : RIGHT INCENTIVES AND SUCCESSION PLANNING CAN DEVELOP LOYALTY.

GROWTH AND PRODUCTIVITY IN EMPLOYEES.

H1 : RIGHT INCENTIVES AND SUCCESSION PLANNING CANNOT DEVELOP

LOYALTY. GROWTH AND PRODUCTIVITY IN EMPLOYEES.

THE CHI-SQUARE TEST PERFORMED:

X^2 = 200.7
CRITICAL VALUE = 443.6
CONFIDENCE LEVEL = 0.05 ( 95%)

RESULT: There is enough evidence to support the claim that “ Right incentives and
succession planning can develop loyalty, growth and productivity in employees. “

q q q q2 q2 q2 q3 q4 q5 q5 q5 yes no MEAN VAR

4 6 9 5 6 7 3 9 0 2 3
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 8 3 $9.60 2.56
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 8 3 $9.60 2.56
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 9 2 $9.60 0.36
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
1 1 1 1 1 1 1 1 1 1 10 1 $9.60 0.16
4 4 1 39. 9.
5 5 3 45 45 45 43 45 45 24 37 3 6 14.8
3 5.7 1.
0 0 2 0 0 0 2 0 0 21 8 3 4
 HYPOTHESIS NO:5 QUESTIONS
4,6,9,25,26,27,33,49,50,52,53

50

45

40

35
0-45 RESPONDENTS

30

Series1
25
Series2

20

15

10

0
1 2 3 4 5 6 7 8 9 10 11
HYPOTHESIS NO:5 PERMANANT JOB OFFER
TO CONTRACTUAL EMPLOYEES CAN
ILLIMINATE ATTRITION AND DEVELOP
LOYALTY ACROSS THE MARINE INDUSTRY
 Series1
HYPOTHERSIS NO:5 TOTAL NO: OF YES'S Series2
RESPONDENT-WISE AGAINST ALL QUESTIONS Series3
Series4
12 Series5
0-10 QUESTIONS 10 Series6
8 Series7
Series8
6 Series9
4 Series10
2 Series11
Series12
0
Series13
1
Series14
0-45 RESPONDENTS Series15
Series16
Series17
0-11 QUESTIONS

HY
POTHESISNO:5RESULTSDERIVEDON
VA RIA
B LES

1
2
1
0
8
Se
rie
s1
6
Se
rie
s2
4
2
0
1 2 3 4 5 6
1
= SE
NIO
R,2
= J
U N
IOR
,3=AFLOAT,4
= A
SHORE,
5=PERMANE
NT,6=CONTRACTUA
L
0-45 RESPONDENTS

A
VERA
GER
ESUL
TOFHYPOTHE
SISNO:5ON
B
ASISOFRESPON
D ENT
S

5
0

4
0

3
0 S
erie
s1
2
0 S
erie
s2

1
0

0
1
Y
ES=3
9.2
7 N
O=5
.73
0-11 QUESTIONS

A
VER
AGERE
SUL
TOFH
YPOTHESISNO
:5ON
B
ASISOF1
1Q UEST
ION
S

1
2
1
0
8
S
erie
s1
6
S
erie
s2
4
2
0
1
Y
ES=
9.6 N
O=1
.4
 0 X^2 140.2 C.V. 443.6

HYPOTHESIS 5

Ho : PERMANENT JOB OFFER TO CONTRACTUAL EMPLOYEES CAN ILLIMINATE

ATTRITION AND DEVELOP LOYALTY ACROSS THE MARINE INDUSTRY.

H1 :. PERMANENT JOB OFFER TO CONTRACTUAL EMPLOYEES CANNOT

ILLIMINATE ATTRITION AND DEVELOP LOYALTY ACROSS THE MARINE
INDUSTRY.

THE CHI-SQUARE TEST PERFORMED:

X^2 = 140.2
CRITICAL VALUE = 443.6
CONFIDENCE LEVEL = 0.05 ( 95%)

RESULT: There is enough evidence to support the claim that “ Permanent job offer to
contractual employees can eliminate attrition and develop loyalty across marine industry.
“
 q4 q4 q5 q5 q5 q5 q5 q5 q6 q6 q6
5 8 4 5 6 7 8 9 0 1 2 yes no MEAN VAR
0.577
RESP1 1 1 1 1 1 1 1 7 4 7.76 6
0.057
RESP2 1 1 1 1 1 1 1 1 8 3 7.76 6
0.057
RESP3 1 1 1 1 1 1 1 1 8 3 7.76 6
0.057
RESP4 1 1 1 1 1 1 1 1 8 3 7.76 6
0.577
RESP5 1 1 1 1 1 1 1 7 4 7.76 6
0.057
RESP6 1 1 1 1 1 1 1 1 8 3 7.76 6
0.057
RESP7 1 1 1 1 1 1 1 1 8 3 7.76 6
0.057
RESP8 1 1 1 1 1 1 1 1 8 3 7.76 6
0.057
RESP9 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.577
0 1 1 1 1 1 1 1 7 4 7.76 6
RESP1 0.057
1 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.057
2 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.057
3 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.057
4 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.057
5 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.057
6 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.057
7 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.057
8 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP1 0.057
9 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP2 0.577
0 1 1 1 1 1 1 1 7 4 7.76 6
RESP2 0.577
1 1 1 1 1 1 1 1 7 4 7.76 6
RESP2 0.057
2 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP2 0.057
3 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP2 0.057
4 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP2 1.537
5 1 1 1 1 1 1 1 1 1 9 2 7.76 6
RESP2 0.057
6 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP2 0.577
7 1 1 1 1 1 1 1 7 4 7.76 6
RESP2 0.577
8 1 1 1 1 1 1 1 7 4 7.76 6
RESP2 0.577
9 1 1 1 1 1 1 1 7 4 7.76 6
RESP3 0.577
0 1 1 1 1 1 1 1 7 4 7.76 6
RESP3 1.537
1 1 1 1 1 1 1 1 1 9 2 7.76 6
RESP3 0.057
2 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP3 0.057
3 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP3 0.057
4 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP3 0.057
5 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP3 0.057
6 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP3 0.577
7 1 1 1 1 1 1 1 7 4 7.76 6
RESP3 0.577
8 1 1 1 1 1 1 1 7 4 7.76 6
RESP3 0.057
9 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP4 0.057
0 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP4 0.057
1 1 1 1 1 1 1 1 8 3 7.76 6
RESP4 0.057
2 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP4 0.577
3 1 1 1 1 1 1 1 7 4 7.76 6
RESP4 0.057
4 1 1 1 1 1 1 1 1 8 3 7.76 6
RESP4 0.577
5 1 1 1 1 1 1 1 7 4 7.76 6
31. 7.7 12.31
0 2 32 45 45 45 43 45 45 0 45 5 6 2
13. 3.2
45 43 13 0 0 0 2 0 0 45 0 5 4
 HYPOTHESIS NO:6 QUESTIONS
45,48,54,55,56,57,58,59,60,61,62

50

45

40

35
0-45 RESPONDENTS

30

Series1
25
Series2

20

15

10

0
1 2 3 4 5 6 7 8 9 10 11 12
HYPOTHESIS NO:6 MULTI-NATIONAL CREW CAUSE
COMMUNICATION GAP THUS RESULTING IN
DISHARMONYAND INMCREASE ATTRITION AMONG
CREW
 Series1
HYPOTHESIS NO:6 TOTAL NO: OF YES'S Series2
RESPONDENT-WISE AGAINST ALL QUESTIONS Series3
Series4
10 Series5

0-11 QUESTIONS
8 Series6
Series7
6 Series8
Series9
4
Series10
2 Series11
Series12
0
Series13
1
Series14
0-45 RESPONDENTS Series15
Series16
Series17
0-11 QUESTIONS

HY
POT
H E
S ISNO:6R
ESUL
TSDE
R IVEDON
VA R
IABLES

1
0
8
6 Se
rie
s1
4 Se
rie
s2
2
0
1 2 3 4 5 6
1
= SE
NIO
R,2
=JUNIO
R,3=AF
LOAT,4
= A
SHORE,
5=PE
R MAN
ENT,6=CON
TRACTUA
L
0-45 RESPONDENTS

A
VERAGERESULTO
FH Y
P OTHESISNO:6ON
BASISOFR ESPO NDENTS

35
30
25
20 Series1
15 Series2
10
5
0
1
Y
ES=31.50 N
O =13.50
0-11 QUESTIONS

A
VER
AGERE
SUL
TOFHYPOT
H E
S ISNO:6ON
B
ASISOF11Q UE
S TIO
NS

1
0

6 S
erie
s1
4 S
erie
s2

0
1
Y
ES=
7.7
6 N
O=3
.24
 0 X^2 43.9 C.V. 443.6

HYPOTHESIS 6

Ho : MULTI-NATIONAL CREW CAUSE COMMUNICATION GAP THUS RESULTING

IN DISHARMONY AND INCREASE ATTRITION AMONG CREW.

H1 : MULTI-NATIONAL CREW DO NOT CAUSE COMMUNICATION GAP THUS

RESULTING IN DISHARMONY AND INCREASE ATTRITION AMONG CREW.

THE CHI-SQUARE TEST PERFORMED:

X^2 = 43.9
CRITICAL VALUE = 443.6
CONFIDENCE LEVEL = 0.05 ( 95%)

RESULT: There is enough evidence to support the claim that “ Multi-national crew cause
communication gap thus resulting in disharmony and increase attrition among crew. “
 Page 70

Semi-o-logical or conversation analysis:

Conversation Analysis (CA) as a mode of inquiry is addressed to all forms of talk and
other conduct in interaction, and, accordingly, touches on the concerns of applied
linguists at many points. This review sketches and offers bibliographical guidance on
several of the major relevant areas of conversation-analytic work—turn-taking, repair,
and word selection—and indicates past or potential points of contact with applied
linguistics.

The idea of this topic came into mind after having gone through a very critical period of
my professional life when I was sailing as Master in a PRC (Peoples Republic of China)
shipping company based in Mainland China with head office in Shanghai and sub office
in Hong Kong. They had a policy of hiring one good professional, pay him handsomely
and keep all Chinese officers and crew who had no exposure whatsoever of international
shipping, thus void of experience and additionally had very poor knowledge of English
language giving rise to communication gap.

As long as things were running good and smooth the language barrier did not play any
vital role in ship operations. The actual flaw, barrier and hindrance came to light when a
near miss accident was averted by a miracle.
 CHAPTER 6

DISCUSSION

1. Degree of research questions answered

2. Degree of hypothesis test

3. Implications of research findings on concepts and theories

4. Implications of findings for researchers

5. How have the findings contributed to the literature

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