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Lecture 3 Pirate - Ship
Lecture 3 Pirate - Ship
Captain Hook
PIRATES
T F
10. Pirate ships looked for opportunities to battle with merchant ships.
PIRATE QUIZ
1. T F
T F
2.
T F
3.
4. T F
5. T F
6. T F
7. T F
8. T F
9. T F
10. T F
PIRATE QUIZ
1. Pirates’ main objectives were fighting and killing
T F
2. Pirate crew members were volunteers
T F
3. Pirates joined as much for the high quality of working life on board ship, as
for the money. T F
10. Pirate ships looked for opportunities to battle with merchant ships. T F
THE PIRATE SHIP
LECTURE OBJECTIVES
• Organization
• Organizational effectiveness
• Quality of working life
• Predation
• Paradox of power
• Organizational dilemma
• Hierarchy
• Industrial democracy
• Separation of powers
• Free rider
• Rules
THE PIRATE SHIP
KEY NAME
• Peter Leeson
Merchant and pirate
ships
Based on documentary
research of historical
records
• Pirates - criminals, torturers, murderers - outlaws
OB7: 8
ORGANIZATION
Social arrangement • Individuals agree to
join together
Controlled • Establishment of a
performance level of operation,
deemed satisfactory
• Pirate ship
More Less
Merchant Ship Pirate Ship
(owned by investors) (stolen)
4x cannons
5 x crew
MERCHANT SHIP
PIRATES’ OBJECTIVE?
PIRATES’ OBJECTIVE?
Maximizing profit
PIRATES’ OBJECTIVE?
Profit maximization
was a measure of …
organizational effectiveness
Field map of the organizational behaviour terrain
OB7: 2/14
ORGANIZATIONAL
EFFECTIVENESS
OB7: 15
PIRATES’ OBJECTIVE?
Profit maximization
T F
10. Pirate ships looked for opportunities to battle with merchant ships.
PROFIT MAXIMIZATION
To maximize profits,
Keep income up
Keep costs down
PROFIT MAXIMIZATION
2. Good leadership
2. Good leadership
Carpenter Cheeseman
the 7 conscripts
T F
10. Pirate ships looked for opportunities to battle with merchant ships.
1. Recruitment of high quality (volunteer) employees
MONEY
Anglo-American merchant ship seaman: £12 per year
PREDATION
Captain
Merchant Ship
Pirate Ship
Field map of the organizational behaviour terrain
OB7: 2/14
DEFINITION
OB7: p.16
1. Recruitment of high quality (volunteer) employees
Death
T F
10. Pirate ships looked for opportunities to battle with merchant ships.
‘PEOPLE’ REQUIREMENTS FOR
PROFIT MAXIMIZATION
2. Good leadership
Paradox of power
Predation
PARADOX OF POWER
The need for authority and leadership in
organizations generates a strong
incentives to abuse that power
2. Good leadership
Paradox of power
Predation
PREDATION
Captain
• 1 pirate = 1 vote
• No organizational dilemma
ORGANIZATIONAL DILEMMA
OB7: 11
Captain election
• No organizational dilemma
T F
5. Pirate ships operated a workers’ injury, disability and death compensation
scheme.
T F
6. All crew members received similar shares of the booty.
T F
7. All pirates signed a contract of employment when joining a ship specifying
pay, rules and punishments.
T F
8. Life on board a pirate ship was characterized by gambling, stealing, fighting
and killing.
T F
9. ‘Walking the plank’ was pirates’ favoured form of punishment.
T F
10. Pirate ships looked for opportunities to battle with merchant ships.
2. Good leadership
Organizational hierarchy
HIERARCHY
OB7: 459
HIERARCHICAL LEVELS
PIRATE SHIP HIERARCHY?
7 HIERARCHICAL LEVELS
TWO HIERARCHICAL LEVELS
owner
workers
MERCHANT SHIP
THREE HIERARCHICAL LEVELS
captain
officers
seamen
PIRATE SHIP
NO HIERARCHAL LEVELS
PIRATE SHIP
NO HIERARCHAL LEVELS
Intermittent captain
INDUSTRIAL DEMOCRACY
Paradox of power
Predation danger
Paradox of power
Predation danger
Separation of power
DEFINITION
SEPARATION OF POWER
The Quartermaster
Election of Election of
captain quartermaster
Separation of powers
2. Good leadership
FREE RIDER
A member who obtains benefits from
team membership without bearing a
proportional share of the costs for
generating that benefit.
OB7: 364
3. Conditions of employment
Persuade them to:
• Diligently do their daily duties
• Give their all in battle
• Extract loot from victims
Publick Stock
1. Injury Benefit
Captain Roberts’ crew (article IX) stated
2. Disability Benefit
On-going payment
3. Death Benefit
10. Pirate ships looked for opportunities to battle with merchant ships. T F
3. Conditions of employment
• Loot sharing
Performance related bonus scheme
1. Battle bonus
Those who behaved courageously and
performed any deed of extraordinary
valour in battle, or captured a ship, would
be rewarded out of common plunder
Performance related bonus scheme
2. Spotting bonus
Bonus to those who first spotted potential target ships
• Loot sharing
Loot sharing
Loot sharing
Pirate democracy ensured all crew
members (including captain) received
the same or similar share of the loot
Pirate ship was a sea-going, workers’ cooperative
T F
10. Pirate ships looked for opportunities to battle with merchant ships.
‘PEOPLE’ REQUIREMENTS FOR
PROFIT MAXIMIZATION
2. Good leadership
RULES
Procedures or obligations explicitly stated
and written down in organization manuals.
OB7: 479
Pirate Code
Required the unanimous consent of all
pirate crew members.
T F
10. Pirate ships looked for opportunities to battle with merchant ships.
Pirate Code
1. No drunks disturbing sleeping sailors
Pirate Code
2. No bringing women or young boys on
board
Pirate Code
3. Captured women not to be molested
Pirate Code
4. Each pirate’s share of booty agreed
upon
Pirate Code
5. Death for anyone killing or stealing from
another pirate.
Pirate Code
6. Trial before punishment, with crew as
jury.
Pirate Code
7. Punishments fit the crime
No share
of loot flogging tied to mast
Pirate Code
7. Punishments fit the crime
Keelhauling marooning
(death) (death)
Marooned with two sea turtles
Pirate Code
Pirate Code
Pirate Code
8. No lighted lamps, firing pistols, smoking
below decks
ammunition
Pirate Code
9. No gambling on board
1. No drunks disturbing sleeping sailors
2. No bringing women or young boys on board
3. Captured women not to be molested
4. Each pirate’s share of booty agreed upon
5. Death for killing or stealing from another pirate.
6. Trial before punishment, with crew as jury.
7. Punishments fit the crime
8. No lighted lamps, firing pistols, smoking below decks
9. No gambling on board
4. Good working environment
Rules
T F
10. Pirate ships looked for opportunities to battle with merchant ships.
PIRATES SPOILING FOR A FIGHT?
• Numerically superior to target (80 v 15 men)
• Superior strength (multiple cannons)
• Pirate image:
– Blood-thirsty
– Battle-loving
– Fiendish curs
• Suggests:
– Looking for good brawl
– Booming cannons!
– Clashing cutlasses
PIRATES AVOIDED ARMED CONFLICT
Why?
ARMED CONFLICT INCREASED
‘COSTS OF PRODUCTION’
How?
ARMED CONFLICT INCREASED
‘COSTS OF PRODUCTION’
Crew casualties
– compensation payments triggered – reduced dividend
How?
HOW TO AVOID ARMED CONFLICT
- reputation and branding
Cooked alive
Reputation bizarre torture
Cut of lips
Reputation bizarre torture
10. Pirate ships looked for opportunities to battle with merchant ships. T F
THE PIRATE SHIP
LECTURE SUMMARY