Autonomy, bureaucracy, professionalism and accountability: a transaction cost approach to shipboard controls

In recent years, shipping industry has encountered severe competition, technological change, and environmental and safety concerns. In order to remain competitive, firms need to review and redesign shipboard work. A crucial aspect of these efforts is shipboard controls that define the extent of autonomy and accountability of officers and crew. This study examines four types of controls on board ships. These are monitoring and autonomy, outcome accountability, formalization and professionalization. The study applied trancsaction cost theory to test eight hypotheses on board 16 ships in two companies. The results largely confirm theoretical predictions. Task visibility, complexity and uncertainty show strong relationships to the four types of controls. However, there are also significant gaps in that accountability for outcomes is low, and situation with regard to crew training and autonomy can be improved. Implications for human resource practice and future research are discussed.