Ship Management Report
Executive Summary
The purpose of this report is to write a management plan proposal for the ship’s management. The maritime industry and ship management are highly complex and challenging due to market demands and the changing regulations. The tanker company needs to implement the matrix organisational structure for facilitating the coordination of individuals and teamwork, thus enhancing the ship’s management in the maritime industry. Financial controls at the tanker company will be essential for providing the procedures, policies, approaches, and means by which the organisation will monitor and control its financial resources. This will enhance cost reporting and budgeting. The tanker company needs financial controls for the detection of overlaps and any form of anomalies in cost and financial reporting, as well as the organisation budget. The success of the company will depend on the proper planning and management of staff. The tanker company needs to develop a self-regulating business model for enhancing its social and environmental accountability and responsibility, and it will facilitate the company’s survival and improve its profitability. Safety management is necessary at the tanker company for minimising risks, threats, injuries, accidents, and other closely related dangers in the workplace and maritime business environment. Performance monitoring and management at the tanker company will focus on the systematic approaches of controlling, measuring, and enhancing individual and team members, as well as the overall company performance.
1. Introduction
Ship management is highly complex and challenging due to market demands and the changing regulations (Visvikis and Panayides, 2017). Chiefly, ship management has been changing from prices and operational reliabilities to a wide range of goals, such as environmental, quality, productivity, efficiency, and safety management. In this case, technological innovations, ship designs, and energy efficiency have become crucial for effective management (ICS, 2015). Besides, there is a need for having fewer and highly trained crew members. External stakeholders are also focused on improving costs and quality for enhancing technical performance and management. Management plans are necessary for formalising management structures and operations in the maritime industry (Thotokas, 2018). This is essential for the realisation of long-term objectives in the company. It also facilitates the identification of resources, establishment of tasks, prioritisation of goals, formulation of courses of actions, among other activities. In the current case, the tanker company focuses on buying a VLCC and three Aframax tankers. The purpose of this report is to write a management plan proposal for the ship’s management. The report focuses on the development of organisational structure, financial controls, human resource management, corporate social responsibility, safety management, monitoring, and benchmarking performance.
2. Organisational Structure
The tanker company will require an effective organisational structure for facilitating the coordination of individuals and teamwork, thus enhancing the ship’s management in the maritime marketplace and workplace. This is essential for the achievement of the company goals and objectives, as well as the management of individual work. According to San et al. 2018), the structure is among the most valuable tools for the realisation of effective coordination, specification of reporting relationships, communication, and separation of tasks. It will also facilitate the formulation and implementation of policies and responsibilities. Moreover, it will help in the determination of the extent and nature of the company leadership and information flow (Burton et al., 2015). This is essential for streamlining the ship’s operations, improve decision-making, problem-solving, conflict management, and employee performance, and increase focus on the business goals and objectives. In line with the classical management theory, the focus of the company structure will be on meeting physical and economic needs and advocating for labour specialisation, centralisation leadership, decision-making, and enhancing profit maximisation (San et al., 2018).
There are different organisational structures that the tanker company can adopt. Functional and divisional organisational structures are rigid (Burton et al., 2015). On the other hand, flat organisation structures may lead to poor decision-making, wastage of resources and time, and encourage power struggles. In this case, the tanker company should implement a matrix organisational structure because it is highly flexible and efficient (Westland, 2018). Chiefly, it will help the tanker company in enhancing its readiness to changes and market adaptation due to faster response to changing business needs. It will also help in eliminating overlapping and duplication of work. Moreover, it will enhance communication and act as the basis of the tanker company’s effective planning. This is essential for enhancing cooperation and encouraging creativity across the company. Matrix organisational structure will also facilitate smooth operations in the dynamic shipping environment (San et al., 2018). In this structure, the authority of the functional managers will flow downwards, whereas that of the shipping business manager will flow horizontally.
Employees at the company will report to different managers, thus enhancing information flow and coordination of tasks (Westland, 2018). This will facilitate the sharing of knowledge, skills, competencies, talents, and capabilities among stakeholders across the company. However, to avoid confusion, it is crucial for the management team to clarify work priorities, reporting systems, and responsibilities, thus creating a better and favourable working environment (Stone, 2017). Matrix organisational structure will improve managerial and employee accountability and responsibility. The chain of command will be clear, thus enhancing coordination across the tanker company in relation to the newly acquired ships. It will also enhance employee engagement, commitment, motivation, focus, and productivity. The tanker company resource usage will also be optimal. It is important for the management team to cooperate and focus on equal power distribution for preventing confusion and conflicts (Westland, 2018).
3. Financial Controls
Financial controls at the tanker company will be essential for providing the procedures, policies, approaches, and means by which the organisation will monitor and control its financial resources. This will enhance cost reporting and budgeting, thus directing the allocation and utilisation of finances (CFI, 2020). Moreover, it will improve operational efficiency and the overall resource management at the company. Effective monitoring, measuring, and directing of organisational resources is essential for the realisation of the company goals and objectives (Draghici et al., 2014). Financial controls will enhance accuracy in reporting and eliminate threats towards the protection of the company resources. This is essential in cost reporting because it will provide the processes of informing the company on different costs in terms of the usage of resources. It is essential for the company to evaluate the existing financial control policies, thus leading to the implementation of effective and reliable financial control processes and policies (B Corp, 2020).
The tanker company needs financial controls for the detection of overlaps and any form of anomalies in cost and financial reporting, as well as the organisation budget (CFI, 2020). It will also facilitate timely updating of costs and resources, thus improving efficiency and profitability. Moreover, B Corp (2020) notes financial controls will promote accurate forecasting and projections after the analysis of all possible operational and costing scenarios at the tanker company. This is necessary for the effective management of cash flow, resources, profitability, and operational efficiency, as well as fraud prevention. In the company, qualification restrictions should be implemented in relation to financial management policy formulation and implementation (Lidia, 2014). A direct chain of communication and delegation of all duties related to financial management should be established in line with the matrix organisational structure. Effective policies and measures need to be formulated and implemented in relation to cash inflows and outflows management and reporting.
In terms of financial control, human resources, knowledgeable financial, and accounting professionals should ensure all relevant and reliable accounting standards are implemented for accurate financial data and costs reporting (Itani, 2017). The tanker company needs to strive towards the prompt depositing, recording, reconciling, and adequately safeguarding accounts receivable, credit, and all collections. Accounts payable and purchases should be disbursed after proper scrutiny and authorisation by the management team (B Corp, 2020). Besides, all policies and procedures, facilitating effective management of accounts payable and purchases, should be implemented. On the other hand, payroll should be disbursed after the authorisation of the management team in line with all legal requirements. Fixed assets at the company need to be acquired and disposed under the policies and procedures set by the company after the authorisation of the company management team. Financial and cost reporting should be accurate, timely, and in compliance with policies and procedures of financial and cost management (CFI, 2020). The company also needs to implement effective technologies and softwares for enhancing financial control and cost reporting.
Effective budgeting is essential for outlining plans for financial resources expenditure across the company (Lidia, 2014). This will play a major role in balancing the tanker company expenses and income for the ships. It will also enable the company to identify its available capital and develop estimates for expenditures and forecast incoming revenue. This is essential in the ship’s management because it will facilitate business growth and improve performance (Dickie, 2014). The management team will also focus on cash flow, reduction of costs, and increasing returns on investment. This is because budgeting has been established as the basis of organisational success. The tanker company should implement zero-based budgeting because it facilitates accountability and responsibility in the utilisation of financial resources (Lidia, 2014). This will promote participative budgeting, thus lowering costs and increasing revenue.
4. Human Resource Management
The tanker company human resource management plan needs to focus on how human resources can facilitate the realisation of the organisation goals and objectives. The success of the company depends on the proper planning and management of staff (Itani, 2017). It is, therefore, essential to focus on effective staffing, management, controlling, and monitoring of human resources. Besides, employees’ training and development strategies are essential for enhancing their skills, knowledge, and experiences for the efficient execution of tasks. The human resource management plan will show how human resources need to be utilised in the company in terms of roles and responsibilities. This should be in line with workers’ skills, qualifications, and positions. The company needs to adopt a strategic approach in the acquisition, development, management, and motivation of employees (Stone, 2017). Human resource management at the tanker company should focus on the managerial and operative functions of employees.
The managerial function needs to facilitate human resources planning for the accomplishment of the company goals (Itani, 2017). It should also focus on the organisation of workers according to their skills and job activities. Tapping on the full potential of employees should be facilitated by effective directing and controlling. Operative functions will focus on the core duties of human resource management. According to Stone (2017), recruitment and the hiring process should focus on highly qualified candidates for enabling the company to realise its goals and objectives. Job analysis and design at the tanker company need to focus on clarity in job descriptions in terms of qualifications, required skills, tasks and responsibilities, and specific job positions. Performance appraisal should ensure workers’ performance is monitored and evaluated continuously (Gomes and Yasin, 2011). Human resource management should focus on planning, monitoring, and reviewing individual employee’s performance in relation to company performance.
According to Stone (2017), training and development programs need to be introduced at the company for helping employees to acquire new skills and knowledge. This will improve workers’ job execution effectiveness and prepare them for higher responsibilities. Remuneration and employee benefits should be determined in terms of compensations, bonuses, incentives, rewards, and other benefits (Itani, 2017). Taking care of employee welfare will increase their motivation, engagement, and performance. It is also essential for the company to minimise employee turnover for effective human resource management. Stones (2017) notes the company also needs to maintain good labour relations for the realisation of business and strategic goals. This will facilitate industrial harmony by reducing conflicts in the working and labour market environment. Personnel research and record-keeping are necessary for this company for increasing workers’ satisfaction, retention, and loyalty. Employee health and safety should be promoted at the workplace (Oltedal and Lutzhoft, 2018). Moreover, the company needs to address gender and employee diversity as part of facilitating effective human resource management.
5. Corporate Social Responsibility
The tanker company needs to develop a self-regulating business model for enhancing its social and environmental accountability and responsibility. This can be achieved using an effective corporate social responsibility program. Social and environmental accountability will facilitate company survival and improve its profitability (Huang et al., 2008). Besides, it will help in building a brand that consumers trust in the maritime markets. Integrating social and environmental accountability and responsibility into the ship management and business operations will help in cost reduction, the attraction of highly qualified employees, and long-term financial growth and success at the company (Adda et al., 2016). Corporate social responsibility is essential for laying business standards and measures that can be beneficial to society. It will also help in improving the company’s ethical performance. Moreover, it helps in enhancing corporate governance. This will enable the company to meet public expectations in relation to social and environmental responsibility and accountability. Corporate social responsibility will enhance brand image and recognition, increase customer and employee loyalty, operational efficiencies, reduce regulatory burdens, and improve access to funding (Duru, 2019).
The corporate social responsibility program at the tanker company will focus on four aspects for the implementation of standards that are beneficial to the company and the community. In terms of environmental responsibility, the company will take initiatives for reducing pollution and greenhouse gas emissions (Celik, 2009; European Commission, 2020). The organisation will also focus on the use of sustainable natural resources in its operations (F. Panaitescu and M. Panaitescu, 2015). Socially, the company will focus on upholding human rights. The tanker organisation will achieve this by taking initiatives that will promote fair labour practices and trade practices in the maritime business environment (Adda et al., 2016). Besides, the company will ensure it disapproves child labour in its operations. On the other hand, the company will focus philanthropic responsibility where it will focus on funding local projects, education programs, health initiatives, and giving donations to worthy causes. In line with this, the company will ensure it takes economic responsibility programs for improving its business operations (Thotokas, 2018). This is essential because, in line with the stakeholder theory, the company will focus on meeting the needs of all stakeholders in the maritime business environment. As part of the company’s corporate social responsibility, the tanker organisation will also focus on ethical business practices (Management Training and Development Ltd, 2020). Besides, the organisation will uphold social and gender equity.
6. Safety Management
The maritime markets and business environments are highly regulated for enhancing safety (Kristiansen, 2013). It is, therefore, mandatory for companies to develop and implement safety management systems and standards. This promotes safety risk management and assurance. Safety management is essential in the maritime business operations and the environment because the human element is highly complex, and it influences maritime safety, security, and environmental protection (Duru, 2019). In this case, safety management is necessary at the tanker company for minimising risks, threats, injuries, accidents, and other closely related dangers in the workplace and maritime business environment. The company safety management plan will focus on the development and implementation of principles, approaches, and processes of preventing risks and training workers on accident prevention and response, emergency planning and preparedness, and the use of protective equipments at the workplace (Oltedal and Lutzhoft, 2018). The aim of this plan will be to create an environment that has zero tolerance for accidents, injuries, health effects, and environmental damage. Besides, the company will focus on continuous improvement and learning for enhancing safety management.
The tanker company will implement a behaviour based safety program for transforming the organisation safety culture (Kristiansen, 2013). This is important for ensuring all stakeholders share common attitudes, beliefs, procedures, values, and measuring results in terms of safety. In this case, the company needs to focus on different elements of effective safety culture. These include improvement of leadership, responsibility, accountability, setting clear safety expectations, and ethical business practices. Ethical driven management systems will be implemented at the company for the development of strong safety culture (Management Training and Development Ltd, 2020). Moreover, safety management will be facilitated by understanding, respecting, and promoting gender and workers diversity across the company in line with the Hofstede’s cultural dimensions theory that facilitates cross-cultural communication.
Health and safety will be the primary focus of the tanker company for promoting the wellness of all stakeholders (Oltedal and Lutzhoft, 2018). It is also the moral duty of the organisation to provide sufficient protection to the company workers. This will facilitate the creation of a safe and healthy working environment. The company will also focus on developing and implementing health and safety policies and procedures. This will address safety risks, threats, and dangers. It will also ensure all stakeholders are aware of the company’s surroundings. This is essential for the reduction of work-related stress, appropriate use of resources, identification of unsafe conditions, and improvement of efficiency and performance (Duru, 2019). The company will also focus on demonstrating commitment towards safety management, assessing safety risks and hazards, and educating employees on safety management.
7. Monitoring and Bench-Marking Performance
Performance monitoring and management focuses on the systematic approaches of controlling, measuring, and enhancing individual and team members, as well as the overall company performance (Bogetoft, 2012; DNV-GL, 2019). High employee productivity is significant in realising the company goals and objectives. In this case, monitoring and bench-marking performance are essential for determining employee productivity levels for the continuous improvement of individual and organisation performance. Effective monitoring will help in enhancing company progress, growth, competitiveness, and profitability. Monitoring and measuring performance are highly vital in monitoring company progress (Draghici et al., 2014). Effective monitoring and measuring of organisational performance will focus on providing clear direction, setting vision, mission, values, and strategic plans. The company should focus on the identification of strategic measurements right down across the company. Besides, the organisation will facilitate the simplification of performance measures and monitoring the right aspects of performance (Gomes and Yasin, 2011). The tanker company will focus on the definition and communication of the organisation goals and performance targets. It will also enhance the utilisation of performance management softwares. The tanker company will focus on providing employees with continuous and specific feedback.
Benchmarking will focus on comparing company performance against different reference points (Bogetoft, 2012). This is essential for gaining insights that can improve performance. According to Gomes and Yasin (2011), benchmarking is effective in understanding and evaluating the current performance position of the company, thus leading to performance improvement and management. It also facilitates the realisation of desired performance levels. Chiefly, the tanker company should focus on understanding and analysing business processes, comparison of business performance, and closing performance gaps (Bogetoft, 2012). The company should focus on strategic benchmarking by developing and implementing long-term strategies. It is also essential to focus on competitive, process, functional, external, and internal benchmarking. This is necessary for comparing employees and team performance, as well as the organisational performance with other industrial players. This will enhance the long-term company performance, competitiveness, and sustainability in the maritime industry (DNV-GL, 2019).
8. Conclusion
In summary, an effective management plan is essential for describing how organisations operate in the business environment. It facilitates the formalisation of the management structures and operations, thus promoting the realisation of organisational goals and objectives. In this case, the tanker company will require an effective organisational structure for facilitating the coordination of individuals and teamwork, thus enhancing the ship’s management in the maritime marketplace and workplace. Besides, financial controls and human resource management is important at the company. The tanker company also needs to develop a self-regulating business model for enhancing its social and environmental accountability and responsibility. The company should also focus on facilitating safety management, monitoring, and benchmarking performance for the realisation of the desired performance and goals. This will enhance the company’s long-term competitiveness and sustainability in the maritime industry.
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