As for the medals, I use SH3 Commander, but very carefully. Part of the problem is that the stock game only lets you hand out one medal or badge at a time. Every uboatman recieved the u-boat badge after his second patrol (depending on the date, of course - it didn't exist at the start of the war). The game only lets you give one, when the whole crew would get it in real life.
Also if you have a wounded sailor and he gets healed before the patrol is over, the game won't let you give him a wound badge; but SH3 Commander will.
As to the rest, I decide who really deserves medals and promotions, and try not to overdo it.