Organizational Structure & Market Behaviour

1. Organizational Structure & Market Behaviour

2. Shipping Organization 1.1 Liners • Ply along a fixed route on a regular schedule service between group of ports • Offer cargo space to all shippers • Liner operation involves adequately sized fleet • Designed to carry general cargo • Operate both deep and short sea services • Large volume of such cargo is container vessels • Large shore establishment

3. 1.2 Tramps • Does not operate on a fixedsailing schedule • Trades in all parts of the world • Tramps companies are much smaller than liners’ • Engaged under charter party: time or voyage basic, COA • Small shore establishment

4. 1.2 Tramps f) Mainly transporting bulk cargo, low intrinsic value such as coal, ore ,grain, fertilizers g) Shipowner negotiate a separate contract for each employment h) Procurement of cargo through broker i) Freight vary according to ss/dd

5. Organization • Two distinct meanings • One is referring to an entity e.g PETRONAS/MISC • Composed of people • Have a distinct purpose • Have some degree of structure. “Thus organization as entities are group of people bound together in a formal relationship to achieve certain goals”

6. Organization…cont • Secondly, an organization as a process is the structuring of work, systems, and people “ Thus Organization is the form of every human association for the attainment of common purpose” • In practice it is concerned with specifying objectives for the business and each of its sub-units determining in broad terms the activities and decisions necessary to accomplish these objectives.

7. Three School of Thought • The classical school • The organizations are formed to reach objectives and people must fit into the structure to enable the company to reach those objectives • Six (6) general principles 1. Specialization; 2. Definition on clear line of authority; 3. Delegation; 4. Span of control; 5. Chain of command; and 6. Unity of command People physical capabilities and physical needs while ignoring the emotional, social side of human nature.

8. Three School of Thought • The Behavioral School • People is the asset/core/forefront/human capital • Basically a study of an organization is a study on human behaviour • Individual development, job satisfaction, needs/wants, leadership, motivation, talents

9. Three School of Thought • The system school • Concentrates on the decisions that needs to be made to achieve the organization objs • Decision making rather than activity based • STEPS 1. Specify objs; 2. list the sub-system or system areas; 3. Analyse the system areas; 4. Design the communication channels; 5. Group decision areas to minimize the communication burden to improve co-ordination throughout the organization

10. Three School of Thought • The CONTRASTING THEORIES • CS attempts to analyze the activities, BS looks at the people, and the SS based on the requirement of the networks • McGregor : Authoritarian view (Theory ‘X’) and Participatory view (Theory ‘Y’) • Depend on suitability to the circumstances

11. EVOLUTION OF ORGANIZATIONAL STRUCTURE - THE BACKBONE

12. Globalization • Traditional and Current Organizational Structure • Centralization & Decentralization • Human Capital Development • The Focus, Interest, Technology Change • The Structure/Capacity Change • Global Production/Marketing • Global Impact, International Shipping • Business Model Change, so Organization

13. Therefore Roles and Responsibilities Change

14. Changing from the traditional to current management model • Building Human Relationship • Coaching and talent management • Global sourcing and changing market behavior • Problem Solver to Providing Solution • Empower people to clear obstacles and perceived a “can’t do” culture • Inspire and Motivate to Build High Performance Team • It is about technology, global production • It is about international shipping, international financial market and global marketing

15. Consideration in choosing an organizational structure • Type of organization….e.g Military vs Dot Com, • Shareholder/Management Future direction……as is to where?....... • Availability of resources… e.g talent • Financial Capacity • Choice of market • Product and Services • In line with organizational mission, vision, objs

16. Structure of Liner Company

17. Liner Organization • Large shore establishment e.g MISC Bhd • Ply along a fixed route on a regular schedule service between group of ports • Offer cargo space to all shippers • Liner operation involves adequately sized fleet • Designed to carry general cargo • Operate both deep and short sea services • Large volume of such cargo is container vessels • Organizational Chart to be distributed e.g MISC Bhd

18. Liner Organization..cont • Either Public Listed, Public Enterprise, Government Owned Company • Headed by Chairman, Managing Director/CEO • Supported by Finance Director, …roles • Operation Director…roles • Personnel Director….roles • Technical Director…roles • Marketing/Public Relation/Company Secretary/Legal..roles • Information Technology…roles • Organizational Chart to be distributed e.g MISC Bhd

19. Ship/Fleet Management Function • To provide a quality assured ship management services • To operate ships in full compliance with all recognized international regulation e. g ISM, GMDSS, IMO regulations and recognized industry standards • To operate ships, keeping the safety of crew, vessel, its cargo and protection of the environment as top priorities

20. Ship/Fleet Management Function…cont • To operate ships in compliance with classification and flag state rules • To protect the assets and to operate ship in the most cost effective manner • To be ready at all times of emergencies and established safeguards against all identified risks

21. Ship/Fleet Management Function…cont • Maintain a system that ensure vessels are operated efficiently and effectively with emphasis on problem prevention rather than dependence on detection and remedial measures after occurrence • To minimize quality losses by effective measures against waste, inefficiencies, inaccuracies

22. TERIMA KASIH

23. Movement of Goods of various types, sizes and dimensions is a very challenging tasks. Various modes of transport are involved. You are required to present a report on the issues and challenges, and the various factors that influence the choice of mode of transport.