Exploring the key aspects of management organizations in shipping business

AuthorMetin Celik/I. Deha Er
PositionDepartment of Maritime Transportation & Management Engineering, Istanbul Technical University, Turkey/Department of Marine Engineering, Istanbul Technical University, Turkey
Pages95-101

Page 95

1. Motivation on shipping business

The increased popularity and growth of the maritime transportation industry in global trade have eagerly motivated the researchers and practitioners in the field of maritime policy and management. In recent years, the potential and were deeply underlined in several papers (Hork, 2004; Panayides, 2006) in literature. Especially, the human resources context in shipping business (Wu and Lai, 2006) has been addressed as one of the significant themes due to the availability of various constraints and complexity of maritime transportation environment. On the other hand, as the human factor has been cited as the preliminary factor in maritime accidents, it is another critical point to link the human resources with the safety aspects (MIF, 2001). Therefore, effective execution of the shipping operations is required well-qualified personnel both on board and ashore positions, moreover, it is also necessary to structure an innovative management style in practice (Celik and Er, 2006; Celik and Karayigit, 2007).

This paper discusses the key aspects of shore-based organization of ship management companies comparatively. The motivating information on shipping business is represented in this section. The remains of paper are organized as follows: the concept of managerial responsibilities in traditional ship management process is introduced in Section 2. Then, Section 3 concentrates on structuring a control criterion with dependency and feedback on problem by utilizing Analytic Network Process (ANP) as one the popular multiple criteria decision making (MCDM) tool to illustrate quantitative outcomes. The conclusive remarks and proposals towards further research interests are summarized at the end of the paper.

Page 96

2. Overview on managerial responsibilities in ship management

Apart from the other business disciplines, ship management requires high level of competency and proficiency due to the complex nature of maritime industry. Besides the existing risks and challenges in global manner, the internal weakness and threads especially in operational process enforce the ship mangers to seek for the multidisciplinary solutions on various issues such as finance, risk management, legislation, maritime laws, and etc. Managing of decision-making process with respect to main targets and prior principles of ship management company depends on designing and setting the divisional responsibilities in a systematic manner.

Briefly, the common responsibilities and priorities of the different divisions of shore-based management organization (Er, 2001) can be identified as follows:

- Establishing...

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