Shipping always was volatile, but more so since large modern ships appeared in horizon in 1960s. The size of shipping companies increased since 1960s from a single vessel, or from few. Moreover, a shipping company will be defined as a set of vessels. An efficient and effective shipping company has to focus, no doubt, on vessels. The vessel is a floating, and moving internationally, factory of producing sea transport services, and if she avoids human error, is the stable value for a shipping company. Planning and control are indeed twin sisters, who manage wisely a shipping company as well company’s vessel(s). However, we suspect that the reader may be surprised from the fact that a shipping company can plan, doing businesses in a highly volatile and unpredictable environment! From my, almost 15 years, experience from managing 1 insurance company and 2 departments in a large Greek tramp 3 shipping company, since 1977, I have been taught that the prime management function, in a shipping company, is control… based on Planning. Using all four feet managers remove the danger to fall (fail). These four functions metaphorically are the feet of the chair on which top-managers sit. Planning 2 in a firm is an important management function, together with the other three: organizing, controlling and leading. Management believes that the role of manager is to make things happen. Management promises nothing… unless things are done efficiently and effectively… Economics seem to believe in rather automatic economic forces and only requires MC (Marginal cost) to be equal to MR (Marginal revenue). Technology to a manager promises a maximum technical result, and economics promises a maximum economic result. Economics, however, says that a firm has to “maximize normal profits” (M1), provided one used the best available technology. The above two principles of management are applicable also to Captains, the managers of the vesses. Efficiency means: “do things right” (economically) or the cost of a decision to be lower than the income derived from… Is this the well-known Economic Principle 1? Effective means: do the “right things” (to achieve company’s goals), something easy if… not accompanied by efficiency. The main contribution of this paper is our attempt to modify the present: management by distance by future management by looking at …Ī manager has to coordinate and oversee the work activities of others so that to be efficient and effective. Optimal management by objectives as future candidates for shipping companies. We have presented Management by Objectives and Proposed planning for a maritime depression, described here as a common feature Shipping one of maximizing normal profits. Revealed seven objectives for a vessel, the first being the rather meaningless in Isoquant is presented as well her economies of scale. The true objective of a vessel, which is to minimize cost. Leaving, for a while, aside reality, we analyzed Structure of a shipping company in departments and their particular role in We described the procedure, and the importance, of theīudget or plan of expenses (cost) of a vessel in a tramp shipping company, andĪlso we addressed the difficulty to plan receipts (revenue).
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