1. Shipping Organization 1.1 Liners a)Ply along a fixed route on a regular schedule service between group of ports b)Offer cargo space to all shippers.

1

Organizational Structure &

Market Behaviour

Shipping Organization

1.1 Linersa) Ply along a fixed route on a regular schedule service

between group of portsb) Offer cargo space to all shippersc) Liner operation involves adequately sized fleet d) Designed to carry general cargoe) Operate both deep and short sea servicesf) Large volume of such cargo is container vesselsg) Large shore establishment

2

3

1.2 Tramps

a) Does not operate on a fixed sailing schedule

b) Trades in all parts of the world

c) Tramps companies are much smaller than liners’

d) Engaged under charter party: time or voyage

basic, COA

e) 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

OrganizationTwo 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 ThoughtThe 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 ThoughtThe 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 ThoughtThe 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 ThoughtThe 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

GlobalizationTraditional 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 RelationshipCoaching and talent managementGlobal sourcing and changing market behaviorProblem Solver to Providing SolutionEmpower people to clear obstacles and perceived a “can’t do” cultureInspire and Motivate to Build High Performance

TeamIt 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

Liner Organization

a) Large shore establishment e.g MISC Bhdb) Ply along a fixed route on a regular schedule service

between group of portsc) Offer cargo space to all shippersd) Liner operation involves adequately sized fleet e) Designed to carry general cargof) Operate both deep and short sea servicesg) Large volume of such cargo is container vesselsh) Organizational Chart to be distributed e.g MISC Bhd

17

Liner Organization..cont

a) Either Public Listed, Public Enterprise, Government Owned Company

b) Headed by Chairman, Managing Director/CEOc) Supported by Finance Director, …roles d) Operation Director…rolese) Personnel Director….rolesf) Technical Director…rolesg) Marketing/Public Relation/Company Secretary/Legal..rolesh) Information Technology…rolesi) Organizational Chart to be distributed e.g MISC Bhd 18

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.