Here is a bit of info on morale and efficiency in the crew mangement mod:
Efficiency: A measure of how capable the crew member is of conducting certain tasks. Many factors have an impact on crew efficiency such as fatigue and proficiency.
In this model, awards and promotions will tend to improve crew member performance. This behavior can be correlated to the promotion and award systems in modern navies where those sailors better able to perform tasks in a given rating are given awards and/or promotions to higher ranks. While SH3 does not model individual crew members well, this system can be applied such that those crew members receiving awards or promotions are those deserving the recognition and as a consequence receive a “bonus” to performance. This performance bonus allows higher ranking crew members to recover efficiency 10% faster than the next lower rank.
The decay rate for crew efficiency has undergone many tweaks. The version of the “Not you grandmothers crew management mod” will cause all crew efficiencies to be at a minimum after about 18 hours, however many other factors will influence how well compartments function. The rate at which efficiency is lost varies based upon the location of the crew member. For example, crew members in the torpedo rooms, engine spaces, damage control and the bridge will reach minimum efficiency first. During harsh weather, crew members on the bridge will reach minimum efficiency even faster.
In order to offset the lack of additional crew berthing, “neutral” spaces have been established in the engine room not currently in use. Crew members will not regain efficiency, but they will not lose efficiency either.
Crew members at minimum efficiency will be denoted with an “E” next to the character portrait.
Morale: This is a measure of the emotional condition, or confidence, of the crew. Morale has a dramatic impact of crew effectiveness. Crew member injury or death has a tremendous negative impact on crew morale, and can devastate the entire crew morale. Sinking ships, on the other hand provides a boost to crew morale. In the “Not you grandmothers crew management mod” four to five crew deaths or eight to ten crew injuries will result in the crew reaching minimum morale. Like the efficiency statistic above, crew members at minimum morale will be denoted with an “E” next to their portrait. Due to the limitations in SH3 it is not possible to differentiate between minimum efficiency and minimum morale without looking at the individual crew members. The easiest way is to avoid situations resulting in crew injury or death. When crews are at minimum efficiency, most compartments will stop working after about 12 hours, though it does vary by compartment.
The current system starts every crew member at maximum moral. This morale is slowing reduced during the course of the patrol. This can be thought of as a long term sort of "combat fatigue". Morale has been timed to go down very slowly over about a six to seven week period. If you sink ships during this period of time, you will increase crew morale and extend the amount of time before crew morale reaches a minimum.
Health: As the name implies, this is the physical well being of an individual crew member. Rank no longer provides improvements in health with every crew member on an equal basis.