CONSTANTA MARITIME UNIVERSITY

SHIPPING DEPARTMENT

MARKETING-MANAGEMENT

CHAPTER 1
MANAGEMENT INTRODUCTION
1.1. Etymology of the term MANAGEMENT MANAGER
Linguists say that time management - manager comes from the Latin
"manus" (hand) from which the terms "maneggiatore" (who dreseaz horses) and
"maneggiare" (training of horses). French term took on the form of "Manege" and
"maneger" and then as the "menage" (household) and "menagerie" (a household,
manage the economy, with thoughtfulness money, income, assets) . In 1066
when William of Normandy becomes the first king of England, the English take
French term "menage" to add the particle "to" resulting verb "manage to" (to
govern, administer, manage, to cope, to succeed, to lead ). Time management
was first introduced and used in journalism, government, politics, sport and the
arts. In 1882's first Conference on Management, conference participation is very
low. At the beginning of sec. XX concept of "manager" to designate a person
driving a "business" or an institution, the main administrative leader of a
company. In Romanian retrieve terms in this respect are the French: "Directeur",
"direction", "administration" or "manage". In 1930 the U.S. definition of
"management" is a business management science, a set of rules governing from
practical observations on the conduct of business activities, following scrutiny of
competition, the competitive environment surrounding, opportunities business,
profitability, business risk, bankruptcy.
A decisive influence penetration into all areas of management had James
Burnham in his book "The Managerial Revolution" (New York, 1941). It strongly
requires the notion of "manager" as a vector of innovation and progress and
management efficiency as growth factor. Burnham defines managers as a "social
group able to organize a business in innovative and expansive spirit". All
Burnham highlights the essential role, managers Dynamic performance and
managerial primacy in economic and social life of companies, organizations and
companies. Burnham launches a new idea, namely that "any company,
regardless of their ideological system, it needs capable managers and
management competitive if it wants its economy to thrive in an innovative and
dynamic rhythm."

1.2. DEFINITION OF MANAGEMENT SCIENCE. OBJECT OF

STUDY
There are over 140 definitions of management. There can be no
universally accepted definition of management, it is both science and art practice.
Management Science has crystallized recently, through the efforts of a number of
specialists in response to urgent needs of social practice. Much of the definition
accepts that management is a process. In this respect Americans Reece and
O'Grady says that "management is a process of coordination and combination of
human, financial, and informational materials to meet the primary goal, namely to

obtain goods and services required by a particular market segment." Other

definitions accept the science of management techniques and management of
enterprise management.
Romanian literature management is defined as "science which ensures
management of all processes within economic units in all their functions, having
fore man's participation motivated to achieve objectives". Michael Dumitrescu
while designing management as "a tangible form of intellectual activity with
defined goals." Another definition is that given the A.S.E. Bucharest that
"management is the establishment and achievement of goals by achieving the
five core functions of leadership in human resources, financial and material
belonging to an organization". For the purpose of the current management has a
triple meaning:
-managing the process,
-management as a decision maker (an individual or group of individuals invested
with authority, responsibility and liability management function in an
organization),
-management as a science.
A definition of economic management is that "management is studying the
economic and management relations in the economic organizations in order to
discover legalities and principles that govern the design of new systems,
methods, techniques and management, which would ensure efficiency. "Specific
elements of science to economic management is the processes and
management relations. They are different economic, have certain special
characteristics which give management a strong specificity. By studying these
elements are found laws, principles, rules and other elements that explain the
content management. Given the applicability of management has a major role is
designing new systems and management techniques. They are tools available to
managers to increase efficiency. A specific feature is the location in the center of
investigations of man, as subject and object of management against the
objectives incumbent organization under which it is integrated.

1.3. MANAGEMENT
PRAGMATIC

SCIENCE,

ART

WORK

AND

Management is science that deals with studying the processes and

management relations in the economic organizations in order to discover
legalities and principles that govern the design of new systems, methods,
techniques and management, such as to ensure efficiency. Management is the
practice that the legitimate and practical business management principles serve.
Management Science is the practical application of scientific management.
Scientific management is a set of processes by which theoretical and
methodological elements of science are applied in social practice management.
Scientific management is a practical and concrete. He is working daily operating
managers at all hierarchical levels of economic activity. But what managers do is
scientific management, but only that part which is based on knowledge and

application of theoretical and methodological elements provided by Management

Science, the other representing an empirical management, management
developed based on experience, intuition, flair.
Management is art because it involves an art of stewardship talents of others,
that art to bring about some things with people, art of putting others to do the job.
F. Taylor say that management is "the art of knowing exactly what should be
done better and cheaper, smarter motivating human resources." Management is
the art of leading people to report inter-and multi-personal interaction that
appears as an objective necessity due to its hierarchical structures specific
company. The manager must know the next technical characteristics and specific
human resources can never be known with precision that can be known technical
and material resources.
The essence of management lies in the fact that art to shape the actions and
behavior of people and headed for the decisions. Human resources are not
automatically subject to strict laws, because one can see human motivation
(interests, aspirations, ideals) that differ in greater or lesser human behavior and
actions of the objectives pursued. Hence the strong determination of the content
management of the human factor. Therefore both the theory and management
practice becomes a dimension whose artistic expression depends on experience
and leadership skills of managers, which makes the management to be one of
the most difficult areas. As a manager must know to understand human nature,
to fail to define and solve problems in many practical situations involving people.

CHAPTER 2
MANAGEMENT PROCESSES
2.1. INTRODUCTION
Work processes are carried out in any socioeconomic system and can be
divided into:
a). processes running. Characterized by the fact that labor acts directly on
objects by means of work work to get products and services, appropriate work
processes involved and the nature of the planned objectives.
b). management processes. Unlike running processes, is characterized by
the fact that some of the labor force works on most human resources to increase
efficiency.
Management process is a set of phases, activities, processes which determine
the organization's objectives are established resources, establish processes
necessary to achieve the objectives and their contractors, integrates and controls
the work of staff using complex methods and techniques, all leading towards the
goals in terms of efficiency as possible. In the following management processes
are distinguished main components, which are actually functions of
management:
-forecasting and planning,
-organization,
-coordination,
-training and motivation,
-control and evaluation.
They typically make up the content management process which is carried
in all socio-economic systems. The typical management process is structured as
management functions are designed and performed in three main stages:
-Phase is characterized by the predominance forecast forecasting,
focusing on ways to anticipate, the future goals for this organization at this stage
taking place to develop future strategic decisions. Phase prediction corresponds
management type that has a forward-looking.
-Phase of operationalization, executive functions are characterized by the
predominance of organization, coordination and engagement of staff in achieving
planned daily activities. Current decisions now, mostly on production activity.
This phase corresponds to the operative management that has a efectoriu.
-The final stage, postoperative stage is commensurate and interpretation
of results, which correspond to the control-assessment is made against
objectives set in the first phase. This phase corresponds with a postoperative
management of ascertaining character. This phase ends a cycle of leadership
and prepare the conditions for taking the next cycle.
Between the three phases are closely interdependent, they can not be
separated because the unity and complexity of management. The raw material

that is based phases and functions is the information management process. This
serves to substantiate management decisions as the main instrument of
exercising leadership and management as expressing specific process. The
decision quality management effectiveness depends essentially organized,
regardless of size or industry in which it lies. Although management processes
have only a small weight in all work processes, which in content, complexity and
their implications are of decisive business effectiveness. Process management
and execution processes are complementary, both contributing to the objectives
set.

2.2. RELATIONS MANAGEMENT

Management relations are relations established between components of a
socioeconomic system and between them and other system components in
forecasting processes, organization, coordination, involvement, control and
evaluation of business activity. Analysis of the factors which determine the
characteristics of management relations shows that they have a triple
determination:
a). socioeconomic determination. This is the nature of addiction
management relations and ways of life of capital ownership. This determination
shall ensure the same essential socio-economic characteristics of firms that rely
on the same form of ownership. For example, state owned enterprises have
similar key management caraceristici on:
-grounding work on the same principles of management,
-adoption and practice of participatory management arrangements similar
, using similar methods of forecasting, organization and motivation.
b). Determination of technical and material dependence relations
management is the provision of means of work, work with objects that make up
the technical support material of production. This media determines the branches
and sub-framing business and management divided into:
-Management of industrial enterprises,
Construction-management firms,
-Management of agricultural enterprises
Travel-management companies,
-Management of retailers,
-Management consultancy firms, etc..
Determination of technical and material explains the differences that occur
between companies from different management plan branches.
c). human determination is that an appreciable influence on the relations
of human resources management has competence. Managers jurisdiction and
personality, skill level of workers, relations and relations between them have a
bearing on how the event management relations. These factors are a recognition
of the important role human resources play in any organization.
Human Determination explains the differences manifested in the relations
between company management like the other points of view (the nature of
ownership, business profile, financial and material resources). Ultimately
economic efficiency differences between firms reflect differences in the human

factor and default management relations. To better understand the relationship

management features, you must specify the main factors influencing these
relationships management:
-The size and complexity of production,
-The technical equipment and technological process characteristics,
-Dispersion own territorial units,
-Continuity of production,
-Degree of automation of information handling,
-Human-potential,
-Thinking managers and employees
-Legislation on businesses,
-Parameters informal organization among employees.

2.3. SCIENTIFIC MANAGEMENT PROBLEM IN THE MARKET

ECONOMY, GROWTH OF VECTOR
Scientific management helps increase efficiency by 3 ways:
1). Management work contributes to the enhancement of performance in
each job, reflected in increased productivity due to:
-tools and equipment ensuring with superior technical parameters, as a
result of management decisions,
-regular supplies of raw materials corresponding to the quality and
quantity of production needs,
-post-enrollment rates of skilled staff,
-providing all the information needed by contractors labor rationalization.
2). Increasing global functionality of the company by:
-increasing use of production capacities,
-judicious stock-size (peime materials, materials, fuel, etc.),
-increasing the speed of rotation of working capital.
3). Integration to a higher level of business activity within the national
economy according to market requirements by: improving specialization and
cooperation in production, increase production rationalization, supply and sales.
Management contribution to efficiency is not only economic efficiency,
particularly important being and social efficiency. This refers to direct
imponderables, but affecting all those involved in organizational activity of the
company and in particular human factors:
-quality internal organizational climate,
-content and intensity of motivation,
-flow hierarchical relations,
-intensity of feeling of belonging to the company,
-cooperation between employees and creating a sense of "us," team spirit.

CHAPTER 3
MANAGEMENT FUNCTIONS
3.1. MANAGEMENT FUNCTIONS - THE ESSENCE OF
MANAGEMENT
Management functions is the essence of leadership. Therefore knowledge
and thorough understanding of their contents is essential condition for learning
science and practice of management and effective use of systems, methods and
techniques that own them are. For the first time management process analysis
and identification of management functions was made by Henry Fayol, who
believe that there are 5 functions of management: forecasting, organization,
control (decision), coordination and control.
Other experts have said that management has the following functions:
-planning and decision making,
-organization for high performance,
-direction and motivation,
-control results.
In Romania Constantin Pintilie believes that management has 7 functions:
forecasting, organization, motivation, coordination, control, evaluation,
maintenance and development of a climate of competition, incentives and
creativity.
There are basically five essential functions of management:
-forecasting and planning,
-organization,
-coordination,
-training-motivation,
-control-evaluation.
The diversity of these views is the fact that some authors confuse the
functions of management and enterprise. The controversy is due to the novelty of
management science, tentative views, innovation. Management is the core
management functions as they are, in fact, typical process management
components, without which management may take place in any socioeconomic
system.

3.2. Interdependencies MANAGEMENT FUNCTIONS

Process management is a cyclical. Begins with forecasting and planning,
which define the objectives and perspectives of company action, shall be
actionable under the organizational and coordination of organizational
components, train staff to implement activities and ends with monitoring and
evaluation results. The logical way of management functions in a consistent
management process reflects interdependencies management functions. In
practice, the management must be approached as a whole, dealing with

management functions in their close interdependence. Such an approach stems

from:
-Complementarity of management functions, management functions
overlap because organic and ignoring one or more of them were promptly reflect
reduced quality management process as a whole,
-Determination once the systemic nature of the company to which it
carries.
Any deficiency in the management process is reflected in decreased
efficiency of one or more activities of that company. Over time there have been
changes in the importance and prevalence of management functions in the
management of such company:
-50-60 years now, the management companies were organized and
priority control functions, along with evidence of such methods cazon
(authoritarian, military) in the exercise of these functions,
-In the contemporary functions of forecasting, organization and motivation
tend to play a more important extent they are supplemented by participatory
management, forward.
Addressing management functions reveals that besides the obvious
interdependencies between them, appears to highlight the specificities of each
management function has many features and functions specific facets.

3.3. DYNAMIC MANAGEMENT FUNCTIONS

In any organization management process varies on two important
coordinates:
-Vertical management system (the hierarchy),
-Time, both overall and component level functions.

3.3.1. LEVELS AND PYRAMID MANAGEMENT

Regarding the performance management process, the question is:
"management is the same in all organizations and all levels of management?".
Answers: "Yes!" Because all managers meet essentially the same function,
regardless of hierarchical level for the position held and "No" to that extent and
manner of the management process varies in relation to a position that managers
dealing in the company (vertical). In most organizations management team is
structured in different levels of management, forming typical management
pyramid:
a). In the I "Top Management" includes senior managers as:
-Board members,
-Steering Committee members,
President, general manager of the company,
-Vice.
They are responsible for overall management of the company, fulfilling the
following roles:
-Establish the organization's strategies.
-Projected overall objectives of the company: production volume, growth,
profit.

-Represents the company in dealing with the environment.

b). In the second "Middle Management" includes middle level managers
such as:
-Executive director
-Director of economic
-Heads of Service,
-Sections, etc..
They are responsible for the pursuit of middle and top.
c). At level III "Lower Management" (based management or lower) include:
-Supervisors (supervisors),
-Driving-force personnel.
They subordinated contractors performing actions on which planned
objectives. They may be heads of:
-Sections,
-Workshops,
-Team
-Reception
-Restaurant,
-Store
-Firm, etc..
Each category includes managers of different weights and performance
management processes in own work. This scale of the management grows with
the hierarchical advancement, while the share of running processes. Normally
the maximum extent of the records management process at senior management
level. At the level of middle management has been a relative load balancing and
performance management.

3.3.2. GENERAL PRINCIPLES OF MANAGEMENT

Management exercise based on a set of processes that have the same
triple determination that management processes and relationships: socioeconomic, material and human. Management processes are:
a). process of decentralization and increased autonomy of economic
management involves:
-Reducing the presence and role within the state decision and reduce the
powers of these bodies.
-Simplifying and rationalizing planning methodology activities. Discarding
socialist central plan with mandatory and is replaced with a plan to each trader
autonomously establishing indicators indicative of its activity: turnover, number of
employees, productivity, profit size, profitability, earnings, etc..
-Reduce dependence on the central economic units.
-Increase the rights, powers and responsibilities at the microeconomic
level.
In these circumstances, the central management perspective (ministries)
will handle the direction of the management and development of the economic
and social analyzes, studies, forecasts and recommended directions, strategies,

policies to achieve economic and business orientation of favorable economic

results. Increased decision-making autonomy and responsibility in each trader
allow them to compile their own way management and strategy, because only
they know their best available resources, socio-economic environment in which
they operate, market or market segment which addresses the needs and
preferences, opportunities to meet this market.
b). principle of optimizing the relationship between management and the
present in perspective. Any manager in charge and solve everyday issues to the
fore so that it can escape to the future objectives. Thus, the manager needed to
lead the company in view at all times, anticipating change and environmental
perspective. Therefore appears as an objective necessity for any manager to
study, to know and anticipate future trends for development on this basis, to
provide resources and remedies to cope with competition in terms of future
requirements.
c). principle of participatory management involves the participation of
company staff in the exercise of the most important decisions and management
processes. The need for this participative leadership is determined by:
-Increasing complexity and dynamism of the activity of the company.
-Changes of major components of the environment: competition,
legislation, inflation, exchange rate, etc..
Rapid advances in scientific-technical, commercial and organizational
contemporary.
-The increasingly higher training of most staff within companies.
Exercise is both participatory management in large enterprises, which is
indispensable, and in small and very small, which is decreasing, giving greater
emphasis unipersonal management.
d). principle of material incentives and moral stimulation is the main driving
force to promote quality activities, profit growth and economic efficiency. The
principle that the active factor in the development of any company, should
combine harmoniously 3 groups of interest:
-The general interests of society, through tax levies, taxes.
-Company interests in the development, modernization, expansion and
profitability.
-Individual interests of entrepreneurs, owners shareholders, managers,
employees materialized in the amount of income: dividends, salaries, bonuses,
bonuses, etc..
Underestimating one of the three interest groups negatively affects other
interests meet.
e). principle of efficiency expresses the need for system modeling
management companies in order to determine the survival and competitiveness.
Achieving this objective requires the involvement and use of modern
instrumentation methods, tools, concepts of modern management, economic and
social to be applied correctly in efficiency.
f). principle of correspondence between the company management
system parameters and key features of the environment is determined by the
necessity of constant correlations, improvements and adaptations of the

management of each company to actual situation existing in their social and

economic context in evolving.
The origin of this principle results from the dynamism of economic,
technological, scientific, cultural. Following the management change frequently
occurring parameters must adapt to these changes, taking into account: firm
size, complexity of potential material, financial, human, firm market position,
quality human resources, the technical equipment, etc..

3.3.3. MANAGEMENT SYSTEM

Performance management is achieved by the company management
system. Management system are all elements with binding, organizational,
informational, motivational and methodological exercising the management
processes and relationships. Management system components are:
a). The organization includes:
-Organization process of trial work with the components:
-functions,
-activities,
-functions,
-tasks.
-Structural organization with the components:
-position,
-function.
-compartment,
-organizational relationships,
-level hierarchical
-hierarchical-weight (time management, control area).
b). Information System is a set of data, information, digital information,
information flow, procedures and means of treating existing information in a
company.
c). The decision means all decisions taken and implemented in a
company.
d). The methodology is a set of methods, techniques and procedures used
in managing a company. These methods and techniques are grouped as follows:
-General-management methods and techniques:
-management by objectives,
-management by exception,
-management of the budgets,
-participatory management,
-management projects.
-Methods and techniques of management:
-Work-session or meeting,
-delegation,
-Scoreboard driver
-diagnosis,
-feasibility study, etc..

3.4. FUNCTION OF FORECAST AND PLANNING

Forecasting and planning aims to ensure possible future connection to the
realities of this company. This feature aims to determine future business
conditions. The significance of forecasting and planning function is:
-Foreshadowing future business activity,
-Plan, stating the specific indicators that express the company's
objectives,
-Determine the resources allocated to achieve the objectives under the
supervision and management control.
Foreshadowing planning company, the main objectives and actions to be
designed and constructed, requires economic development strategies for efficient
use of resources.
The importance of forecasting and planning function is embodied in the
following aspects:
-Unifies and correlates the human efforts directed towards one or more
objectives set,
-Helps the manager to coordinate the company as a complex system of
objectives, targets, structures, people and resources
-Offers the possibility of developing an economic strategy rather precise
formula "seeing and doing"
-Gives the manager the possibility of referral business opportunities
generating profit
-Help management and managers to define priorities and on this basis to
focus efforts (financial, material) to the really important goals,
-The possibility of knowledge by managers of environmental change
factors acting company and to establish viable action plans in an environment
very dynamic, fluctuating, turbulent., To identify favorable or unfavorable
influence on company management,
-Helps the manager to view and activity management structure, to achieve
objectives and delivering results that push the company to efficiency,
competitiveness, good performance.
One can appreciate that good foresight and planning activity depends, in
defining the existence, survival and growth. Content forecasting and planning
function is: forecasting, planning and plan time, the planning process.

3.5. PROJECTIONS, IMPORTANCE,

METHODS, VARIABLES EXPECTED

THE

FORECAST

The forecast is a vital management companies in the context of specific

competitive market economy. Particular importance is forecast as:
-Appears as a way to exercise management and occurs prior to all
hierarchical levels within the company, especially in peak levels,
-Cosolideaz firm links with its economic and social environment and
facilitate its accommodation to the environment, the conditions for the integration
of the company in this environment.
The existence depend forecast:
-The pace of business expansion.

-The process of renewal.

-Changes needed:
-Production,
-Marketing
-Organization,
-Training of staff
-Level profitability.
Investigating the future by forecasting requires the efforts of knowledge
manager of content and pace of change. In this frame prediction is a necessary
tool for determining location manager on the market where the company and
directing its development into perspective. With the forecast manager can gain a
strategic vision, foresight and anticipation with which:
Can accurately known and anticipated appreciation of the near future and
even more distant.
-Manager is able to appreciate the consequences of environmental
features elements of nature:
-Technology,
-Economy: domestic and foreign,
-Competition,
-Price,
-Consumer preferences,
-Legislative changes.
Can identify the need to improve assortments and quality services and
products market.
Can the organization determine how to adapt to internal and external
markets.
The main methods of forecasting are:
-Prediction by comparison, is expected to obtain the same results
as in the past, taken as a basis for comparison,
-Forecasting by extrapolation, the result of tomorrow will be the day
plus a constant,
-Forecast cyclical events will follow after a reasonably accurate and
stable cycle,
-Forecasting by analogy, based on similarities between two
categories of elements and is used in situations when it is possible to build
mathematical comparison.
Depending on the length and size of target, the predictions are the
following categories:
-Strategic forecasts relate to the complex problems of companies,
such as manufacturing, sales, refurbishment and long duration of 5-10
years
-Medium term forecasts for which the term is 1-5 years,
-Short term forecasts, less than 1 year, which takes the current
goals, short term and operational management carried out by staff.
Forecast variables, ie aspects, factors that predict when we consider are:
-Economic statistics,

-Demographic factors (population distribution in relation to age, sex,

degree of training school),
-Economic policy-makers of the state (fiscal, monetary, fiscal,
customs, commercial)
-New attitudes, behaviors and preferences of consumers,
-Recent information, the "hot", which can be purchased on the
activities, resources, means of action of competitors (especially immediate
and major competitors),
-Time, considered essential variable to forecast.
Time generates simultaneous or sequencial of different stages of process
management. He has one dimension, namely length, with which the manager
considers and co-ordinates activities or temporal distance. The manager
determines the period for purchase most favorable to the sale, setting out the
steps to achieve goals, determine the speed of current assets, determine return
on investment made during the period to achieve the objective. Appealing to
correlate activity manager for ensuring consistency between activities and
objectives, preventing any conflicts that may arise.

3.6. PLANNING AND PLAN

There is an axiom in business management "is well done can not be
achieved without a well-prepared". The plan is considered an essential
management tool, support of management activity. Planning is a cornerstone of
management process as:
-Identify, outline and determine the action to be taken.
-Future-oriented efforts and business manager. These efforts, organizing,
are rationally allocated and effectively combined to achieve management
objectives and by coordinating efforts to ensure routing into action the goals set
by manager.
-Prepare the ground for action control, which evaluates the results, how to
do tasks and take corrective measures when necessary.
Planning is an activity that all managers determine what they want to do
and how to get that achievement. Concrete "plan" means "to prepare today for
tomorrow". For this planning must answer six basic questions for any activity
undertaken:
-What? Identify purpose.
-When? Set the time or period within which the target.
-Where? Determining where the provisions of the plan will be fulfilled.
-Who? People, employees that will act directly to achieve the objectives
set.
-How? Methods of action, phases, methods used to achieve the planned
target.
-How? Cost, resources allocated to achieve the planned goal.
Managers need planning that can not afford to try to act randomly, without
an elaborate, high cost of resources wasted on failure. Planning helps managers
to avoid errors and failures due to their loss and damage accompanying
uncoordinated action. Make efforts to systematically and consistently directed

towards a clear, precise. Planning exercise is chronologically before the other

functions of management, because it guides and influences all other functions of
management as follows:
-The organization shall be so designed as to facilitate and support the
objective set by planning. Activities, tasks, responsibilities, departments,
functions, structural links will be set according to the objectives set by the plan
and subject to those objectives.
-Coordination of activities will result from guidelines developed in the plan,
planning to follow directions closely.
-Training will shape to stimulate employees to achieve maximum
efficiency in terms of planned objectives.
-Control. Planning introduces the basic elements: tasks, rules, indicators,
deadlines, which are indispensable elements of control. It will be held on the
basis set by the plan.
Hence the fact that planning is an orderly and effective action to reach the
manager. The plan is regarded as the most important management tool that
provides answers to key questions of foresight and planning. Compared to
forecast, plan a step further towards the objectives, reflecting the manager's
concrete efforts and focus its objectives. The construction and configuration to
the state plan than abstract, theoretical considerations characteristic of foresight.
The plan is based on analysis of material factors, the firm's financial and human
and their true valuation. The plan aims to ensure judicious use of resources and
effective coordination of the firm has resources in terms of value.
In order to plan the manager reviews critical risks, staff behavior, training
and psychological interests of employees, that plan may be well founded, to be
realistic, motivating, achievable and understandable. A business plan is divided
into the following sections of the plan:
-Plan production which provides:
-Classification of products and services,
-Quantity,
-Quality,
-Varieties, using a series of physical indicators and values as turnover
and output.
-Plan production capacity utilization that establish possibilities for intensive
production capacity.
-Research Plan may be:
-Plan of scientific research
-Plan for the technical progress.
-Technical-material supply plan relating to quantitative and qualitative
structure of the material resources necessary to conduct rhythmic production.
-Plan and salary employment refers to employment resource
requirements:
-Number of employees,
-Structure,
-Labor productivity,

-Average earnings,
-Payroll.
-Plan production costs or expenses which follow issues related to:
-Cost of production,
-Calculation of the product or service plan.
Understanding of the plan as a management tool makes necessary
elements "key" used in planning:
-Goal or mission,
-Goals,
-Strategies,
-Policies,
-Procedures and rules,
-Programs,
-Budgets.
The goal or mission defines the purpose or motive and social value of
work, such an undertaking foreign trade mission is to produce and export
products. It is sometimes said that the mission and purpose of any business firms
is to make profit. Profit is essential for business survival, but it must be obtained
only by carrying out its mission in terms of legality. Operate speculation customer
means not meet the ethical goal of the company.
Objectives express the final results that business activity targets. They are
usually assessed through a system of indicators such as:
-Turnover
-Profit-size,
-The amount of dividends,
-Profitability,
-Level wages.
Strategies are general ways of action and conduct of forces and resources
company, which address the full preset objectives. Establish strategies:
-Strategic objectives,
-Resources,
-Remedies,
-Deadlines.
Strategy does not respond accurately and in detail the question "How can
a company achieve the objectives?", The answer is in charge of plans and action
programs. The strategy appears as a guide to action and thought the company
management. Policies are general formulation, design guidelines guiding
decisions and actions. They delimit an area within which a decision can be taken
and ensure that this objective will be linked and contribute to its realization.
Typically there are policies at all hierarchical levels of an enterprise, they derived
the general policies of higher levels of the company. Procedures and rules are
defined as follows:
-The procedures established usual way of making future activities. The
procedure details the exact manner in which work will be performed, giving the
chronological sequence of her performance.

-Rules are requirements that specify what is allowed and what is not in
action and human behavior in work. A rule can be or not part of a procedure, for
example smoking is not part of any management procedure, but usually that
management provisions to be confirmed and executed exactly as received, shall
form part of the implementation of provisions transmitted managerial chain of
command.
Programs are the steps to achieve, the resources used to perform tasks.
The expression "step plan" and may be:
-Minor, refers to one person,
-Major, he developed long-term are an important issue concerning the
business, such as staff training program for changes to work equipment, the
products offered to customers.
Each company is developing a program coordinator and one major
independent minor. Budgets are a numerical expression of results provided by
the plan and program. Budgets are useful tools for business management and
provision is numerically expressing the future of the company in terms of
indicators such as:
-Turnover (as income),
-Expenses (costs).
They compare their income and resources costs and deliveries. All
managers are involved in the development and implementation of plans
developed planului.Tipologia and dedicated managers during this activity
depends on the organizational level of the position held by managers.
a). Strategic Plan (corporate) sets the development company (corporation)
as a whole, for a period of time (3-5 years). Develop this plan commits managers
at all hierarchical levels. This plan is unified, correlate and harmonize interests of
different major categories of groups inside and outside the company, interested
to support business activities in a coherent system of economic indicators,
financial and major lines of action clear.
b). tactical plan which contains operational departments of the company
aimed to achieve, determining how to proceed, you need to achieve the
objectives and who is responsible for performing the task. These plans are
developed over a period of 1 year and concerns about specific objectives (of a
compartment) and derivatives and detailed strategic plan objectives and
directives.
c). The operational plan is the plan that managers use it directly as an
operative instrument working to fulfill their responsibilities. There are individual
plans that belong to each manager and plans (programs) operative action.
Both require correct answers to the six questions of planning for each activity and
department budgets assume that provide sources, size, how they will be used
and destinations on activities and units. Once the objectives achieved,
operational and tactical plans cease to exist.

3.7. PRINCIPLES AND PLANNING PROCESS

The planning process is a sequence of activities in a characteristic order
management process by which the manager made:
-Setting company objectives,
-Identifying resources,
-Determination procedures and methods to achieve the objectives.
The planning process includes five stages in its development:
-Defining the objective (which aims to achieve),
-Determination of where the organization is to set objectives, assessing
the current state to desired future state (where do we stand?, At what level the
aim pursued?)
-Analysis of internal and external factors that will help or hinder
achievement of objectives and determining the resources available to achieve
the objectives,
-Action analysis of alternatives available to fulfill the purpose set,
identifying, analyzing and choosing the best manager of alternative action plan
which will be applied to be firm,
-Application and an evaluation plan.
If deviations from the planned objectives, the manager comes with
corrective action on the plan (you can change) or changes to that plan actions
are performed.
In preparing the plan, the manager must consider a set of principles used in
planning:
-The principle of employment of resources and obligations. This principle
gives the answer to the question "what time develop the future plan?". Specialists
say that the correct response is to establish that the plan period can be
recovered resources invested in the planned action.
-The principle of flexibility requires that plans and programs and events
are adapted to new situations arising during the course plan. Applying this
principle requires the provision of plans and review them regularly (their update)
by level of achievement of objectives set by the plan.
-The principle of linking short-term plans and long term plans reflects the
need for the composition of short-term plans are not ignored long-term objectives
and plans.

3.8. BUSINESS PLAN

To address issues of theoretical and formal business plan can put the
following questions, which answers trying to convince businessman who set up a
business, on the usefulness of this business plan as a business management
tool. Questions are the following:
-What is a business plan?
-Why you need a business plan?
-What is the content of a business plan?
1). What is a business plan? To understand what a business plan should
define first the concept of "business". An unconventional definition of this concept

may be the intention of a person (natural or legal) to make, to undertake certain

activities in order to obtain a profit. A business plan is based on:
-an entrepreneur or businessman
-consciously assume certain risks,
-wants to obtain a profit
-more activities consume resources and generate income (business idea)
-an environment in which these activities are carried (the business).
The main aspects that may be considered in a business plan are the
following:
-Vision, strategy.
-History, management, human resources, the current activity.
-Market Analysis.
-Analysis of operating costs.
-Investments required.
-The financial projections.
-Schedule.
a). Vision and Strategy. Experts believe that everything starts from the
vision. Each entrepreneur has a vision of the type:
- "I want to produce auto parts that you sell Plant X"!
- "I want to manufacture clothing for children"!
- "I want to produce and market berry juice"!
- "I want to establish a network of Internet - cafe"!
- "I want, want, want. . . "!
-"I want - this is a vision. This vision is really the ultimate goal to which you
want to continue straight through your business. The path you have decided to
start to fulfill the vision is to achieve business strategy.
To clarify the concept of strategy should answer the following questions:
-What is your core business?
-What will generate money and profit?
-How do you show your products / services?
-You already have a model or prototype?
-Who are your customers?
-There is a comparable market offer?
-Where are you going within 5 years.
-Set your goals measurable?
-What is your strong point that makes you think that will be successful?
-There is a consensus among partners / stakeholders on the issues above?
b). history, management, human resources, the current activity. Business
history is very important to understand the business itself, the business today.
And businesses are not born from nothing. They will be born around a / some
people, then develop and function, led by those people. To paraphrase the
popular saying "man holy place" we can certainly say that "sanctifies business
manager". Manager or manager's future would be to ask questions like:
-What experience you bring in business?
-For the theoretical knowledge you have?

-What references can you present?

-Is your family willing to support you?
-You have the financial means to support his family during the difficult
early stages of business?
-You have the financial means to support the business?
-You have the contribution in kind to support the business?
-Cunotinele/experiena You or your partner cover key business areas?
-Where will you locate the headquarters of the Organization?
-How many employees do you need?
-What qualifications must have employees?
-What salary level should be provided?
-You can find the labor necessary specializations?
-You have outlined an organizational structure?
A special question concerns a special significance:
-Where is your business located?
c). market analysis. To perform this analysis can provide the following
questions:
-Why is there a business? To sell certain products / services to market.
A market analysis of how that evolved in the past and how to anticipate
the future evolution, are fundamental pillars for the determination of future
income that will generate business. It is important to answer questions regarding:
-Our Customers
-Who are your customers?
-Companies or individuals?
-How can segment your market?
-How is the market potential of geographically divided?
-You know how big the potential market volume?
-Have an action plan to attract customers?
Knowing the competition involves the following questions:
-What do you know about the competition?
-How many employees?
-What sales force?
-What market shares?
-What competitive advantages are compared to you?
-What strategies have competition price?
-But communication strategies / advertising?
Market knowledge is equally important, it can ask the following questions:
-How do you think will grow sales?
-What is the forecast demand?
Marketing policy is another important element for a business. From here
you can states the following questions:
-You have a product strategy?
-Did you set a distribution policy?
-You have a policy of price and payment terms?
-Have you thought of a political image, communication with the market?

d). Analysis of operating costs. This is very important for understanding

and highlighting current business operating costs. The achievement
demonstrates both an understanding of technological aspects, economic and
managerial aspects of operations. Demonstrates that we understand the
technological, we know why we need infrastructure utilities, many people have to
engage in the structure must have them. Should consider the following costs:
-Costs of establishing a company:
-Permits.
-Entry in the Commercial Register.
-Current costs:
-Raw.
-Consumables, auxiliary materials.
-Staff costs (salaries, social costs), management personnel
salaries,
premiums and bonuses.
-Costs of training and personal training.
-Taxes and local taxes.
-Outside services.
-Accounting.
-Tax Consulting.
-Legal Consulting.
-Management-consultants.
-IT-Consulting.
-PR-Consultant.
-Cost of space:
-Office-space
-Area of production
-Space for sale
-Storage-space
-Heating costs, gas, electricity, cleaning, repair, insurance, water / sewer,
trash.
-Equipment costs.
-Repairs.
-Maintenance.
-Transport costs.
-Fuel.
-Review.
-ntreinere/Reparaii.
-Liability Insurance & all risks insurance.
-Taxes.
-Costs related to the sale:
-Travel.
-Presentation materials.
-Exhibition.
-Administrative costs:
-Move.

-Office supplies.
-Communications: telephone, fax, phone, e-mail.
-Copy documents.
-Evidence primary and payroll.
-Subscriptions (eg journals, legislation, office equipment maintenance,
etc.).
-Literature.
-Taxes.
e). Investment required. Often the business plan is necessary to start a
new activity. Most times a new activity requires a new investment. Must therefore
be based on a pragmatic, honest and realistic investment. To diminish or ignore
the issues related to investment, infrastructure such as utilities or oversize it by
introducing unnecessarily expensive equipment, luxury, are common mistakes
that immediately raises questions (justified) in the minds of shareholders,
partners, donors.
Investment costs can be grouped as:
-Buildings,
-Equipment
-Car
-Other capital goods,
Investment related costs:
-Infrastructure,
-Water,
-Gas
-Current
-Sewage,
-Access road,
-Rehabilitation,
-Arrangements,
-Ensuring safety standards,
-Environmental protection.
-Other costs that may arise:
-Project Expenses.
-Expenses for initialization to use new equipment.
-Expenses for technological tests.
f). financial projections for the plan. Financial projections are expectations
/ planning future business financial statements. Financial projections are
mathematical modeling future balance sheet, profit and loss and the calculation
of liquidity (cash flow) in calculating the rate of profitability possibly some
business. Projections are inextricably linked to points c, d and e above. These
points provide input in the mathematical model and these are erroneous data,
financial projections mathematical model results can only be all wrong and
therefore completely useless.
g). Schedule. Obviously can not proposed "Framework formats", limiting,
for the business plan. But funding for some programs can be made available to

applicants specific framework. As a manager-entrepreneur business plan must

evolve. You can enter these presentation materials that can help business, such
as:
-study certificates / qualifications of the management team and human
resources,
-certified quality
-feedback from customers,
-appreciation of the bank,
-constructive-technological details,
-any other materials or documents which it considers relevant managerentrepreneur in presenting their business.

3.9. ORGANIZATION AND ORGANIZATIONS

Works by modern society there are many organizations that may be:
-Business companies,
-Local and central administration,
-Institutions: schools, universities, hospitals, theaters, military units,
-Cultural organizations,
-Scientific organizations,
-Political organizations, etc..
Organization that is within the Greek etymological origin "organon" which
expresses harmony, organization. In regard managerial social organization is an
entity organized and coordinated acting in pursuit of defined objectives set. The
existence of organizations in society requires teamwork. This work requires an
organization to determine individual employees' harmonization efforts towards
common objectives. Teamwork means adapting individual freedoms of each
employee specific interpersonal relations that organization. Organizing is a
process of finding a balance between individual freedom and its restriction by
working within an organization. Adapting to teamwork is by:
-Education, self discipline, persuasion and not coercion,
-Contract that the employee agrees to limit its freedom under contract.
Each organization has its own form of organization according to:
-Purpose,
-Factors external environment in which they operate,
-Internal factors within the firm.
Form of organization may be based on providing people in the community
trust or exercise authority over subordinates heads. In the last 50 years is
remarkable superiority form of organization by providing creative freedom of
action and subordinates. By accepting to work in an organization people accept
the default limit their individual freedoms and compliance with specific restrictions
of organized collective. When self-employed individual pursues its own objectives
to meet its goals, and freedom of action is restricted only to the goals one sets
them. In an organization, however, individual freedom is restricted by the
objectives and actions of the organization. Manager should also aim to know the
status and personality organization employees, for each function to take its

proper intellectual capacity, personality, knowledge and experience and to

synchronize its activity with the activities of the organization.
The manager must constantly bear in mind that the organization is the
main component of human resources, ie man. On human resources, there are
two of the organization:
Human resources, organization chooses according to their preparation to
meet the demands of jobs to be filled,
Individual choice-based organization of advantages, efforts and rewards
(rewards) that you expect from the organization.
It should be noted that human preferences are different. So some people
are attracted in particular, the aspect, but job satisfaction, prestige. For others,
however, physical work is pleasant, accepting positions and job stress, while
others are prone to truancy, laziness. All these differences of preferences on
labor, determines the diversity in presenting organizations in modern society. The
main features of organizations are:
-Formality. Refers to formal status, their identity as presenting
organization: name, location, phone, fax, accounting forms, logo, etc..
This formality evidences firm, company or business continuity firm in a
market segment in an industry. The work of an organization is larger, the degree
of formality is higher.
-The size and dimension. Are more obvious than formality, because they
are measurable through indicators such as turnover, amount of capital,
employment, income size, etc.. The organization is higher, the more complex
structure.
-Hierarchies. The structure as defined by rank (level) the organizational
and individual subunits of an organization. Each level of the hierarchy is
subordinate to a superior, which is subject to terms and control provisions.
The term hierarchy was originally used to describe the management
system in the Catholic Church (Pope, cardinal, bishop, archbishop, etc..), So that
later, this organization the hierarchical levels to be taken into the army and
organizing various companies business. Today hierarchy characterizes any
organization whose members are classified by rank, degrees (the position is
held).

3.10. AUTHORITY. RELATIONS AUTHORITY

Organizations are systems composed of interrelated subsystems
hierarchically structured so that each subsystem is subordinated to a superior
system, meaning that guide and is subject to its control and under the indulgence
and initiatives will depend on the supervisor. If B is subordinate to A, the
relationship between A and B are called hierarchical authority relationships (so A
is the one who has authority and has the right to give mandatory provisions of B).
Content and exercise the authority of these relationships differ from organization
to organization, from one compartment to another job, according to the following
causes:
-Personality different people (both leaders and the subordinates). This
prints a content and style of service relationships between boss and subordinate.

This way the head to be inconsistent or ordered, rigorous or unorganized,

severely or leniently, close or distant, plus subordinate personality that may be
different, industrious or lazy, dynamic or inert, disciplined or undisciplined,
directly affects the relationship boss-subordinate, climate favorable or
unfavorable, affecting all hierarchical authority relations between the two.
-Differences in culture and mentality, organizations can color-subordinate
relations chief. For example the relationship between boss and subordinate differ
categorically in a military organization (the colonel gives orders dry and
categorical) and is almost completely different cultural organizations.
-Age and seniority of the subjects can change the contents of hierarchical
authority relations. For example, a new manager will act distant with
subordinates. The boss decides otherwise relations with subordinates or younger
and those older.
Modern organizations give more consideration to subordinates and the
subordinates turning in collaborators, giving them freedom of action and by
involving them in decision-making by practicing participatory management. In
addition to hierarchical authority relationships in an organization may appear and
functional relationships of authority. As organizations grow and increase their
complexity is amplified and more difficult problems. Thus there is a need for
employees, appointed advisors (specialists) in various fields (law, economics,
accounting, personnel, administrative, social and human) who heads to advise
on matters in which they specialize. These counselors have direct authority over
lower levels, they have the power and authority to approve solutions to be taken
in terms of their specialized knowledge.
This specialist (S) is the functional authority of A, B and C, who sent
recommendations, advice, prescriptions, rules, to reach a correct decision.
Authority is the right person to have ascendancy over others and give mandatory
requirements and to control their execution. Authority that a post holder has
under his employment is one of the sources of power that gives them the
organization. Authority that has an employee in an organization has two aspects:
-Formal authority (institutional, formal, legal or "de jure") is conferred on
persons by the organization with the appointment and has only while holding the
post,
-Informal authority (informal, real, personal or "de facto") to support some
attributes of the person (professional, demanding, character, vitality, creativity,
honesty, charisma).
These two aspects of authority (formal and informal) are complementary if
they are complete, the occupant of the post is full.

3.11. Hierarchic pyramid

Authority may be: hierarchical or functional. The employees of an
organization to perform both types of authority:
-Hierarchical authority (the head) is applied directly to subordinates in a
compartment, which belongs to the department head, Executive Director, the
Director General.

-Authority belongs functional specialists (counselors) in some areas,

functions (trade, production, personnel, finance and accounting).
Hierarchical authority overrides the functional authority for the holder of
hierarchical authority is closest to the activities and directly responsible for their
execution. On the other hand development and coordination activities require
rapid adoption of management decisions, to trigger certain actions and / or
corrective measures can not only hierarchical superior. This ensures respect for
the principle of leadership. In the hierarchical line organization provides a
hierarchical series of links forming line (chain) hierarchy. Hierarchical levels can
be I, II and III. Compartments located on the same hierarchical chain of
command form a benchmark (ABC and A'B'C '). Compartments or stations on
different hierarchical lines, but are at the same distance from the head on top,
forming the (step) command. Hierarchical pyramid form hierarchical assembly
lines. This shows the number of levels (steps) within the existing hierarchical
management structure.
Hierarchical pyramid can be:
-Flat (with a small number of hierarchical levels),
-High (with multiple hierarchical levels).
a). flattened pyramid has the following advantages and disadvantages.
Flattened pyramid-advantages:
-Provides direct and fast communication,
-Allows managers near the place of execution,
-Information system works quickly,
-Efficiency in decision making,
-Reduced expenditure on wages-managers.
-Flattened pyramid-disadvantages:
-Excessive burdens on managers;
-Limitation of scope of coverage of all issues.
b). flattened pyramid has the following advantages and disadvantages
-High pyramid advantages:
-Basis for better decision
-Removing subjectivity in decision making,
-Adoption of quality decisions.
-Disadvantages-high pyramid:
-Extension circuit information,
-Opportunities for distortion of information,
-Delay decision making,
-Wages expense managers.
Structure is a set of elements (bodies and jobs) and links established
between them. The existence of structure within the organization gives its
character organized system. Between management structure and production are
closely connected. This management structure adapts the structure of
production, because it derives from the technical, economic and organizational
aspects of production.
A management structure has two distinguishing features:
-Mobility, dynamic changes that occur as a result of:

-Market and customer-orientation,

-Technical progress,
-Need to improve the quality of work organization.
-Flexibility, ability to adapt to structural changes necessary at a time
considered appropriate, and a vision for the future.
Components of the management structure are:
-Collective bodies:
-Annual General Meeting,
-Board of Directors,
-Steering Committee,
-Auditing Commission.
-Fundamentals of management structure:
-Position,
-Function,
-Compartment,
-Organizational relationships,
-Level (level) hierarchical
-Hierarchical-weight (control area or time management).
1). Station is the primary element, the basic organizational structure, it is
defined by the following elements:
-Job Title: Director, Head of Service, etc..
-Job-objectives that the role of post holder in achieving overall company
and justify the creation of jobs.
-The duties and tasks performed by the post holder job-specific objectives.
-The authority has two aspects: formal (official) and informal (unofficial).
-Responsibility and obligations, or liability of the post holder to perform
certain tasks, in order to achieve individual job. It expresses the attitude of the
post holder to the manner in which the duties and its duties.
2). Function is generically similar positions of the same nature, in terms of
scope of authority and responsibility. If the function expresses the size of
positions of authority and responsibility generally posts them individually in each
job through job-specific elements: objectives, functions, tasks, responsibility,
authority.
Functions are:
-Management, comprising the authority, responsibilities and tasks
involving performance management,
-Execution, including the authority, duties and responsibilities
involving the decisions made by holders of management positions.
3). Compartment means all persons located in a space and directly
subordinated to a single management framework and relatively homogeneous
activities that require specialized knowledge of a particular technical, economic,
legal, administrative, financial, accounting, etc..
Compartments can be:
-Functional business objectives are established that contribute to
making the decision taken at senior or intermediate professional
assistance to all departments,

-Operational business objectives achieved in which to obtain

products and services covered by the organization operates, such as:
production department, purchasing department, department of
transportation,
-Auxiliary, ensuring good conditions of work, other departments
such as the administrative department, security department, department of
repair, maintenance, heating, water, energy, etc..
4). Organizational relations is a set of links between primary components
(position, function) and units (departments) the organizational structure.
Depending on content, organizational relationships are divided into:
-Relations of authority, established by official regulations and their
enforcement is imperative. These include:
-Hierarchical relationships, which expresses the relationship
between boss and subordinate,
-Function relationships, in the exercise of functional authority of the
have specialized compartments.
Is expressed by: methodological guidelines, studies, requirements,
regulations.
-Relations staff, following the delegation of tasks, authority and
responsibility by senior management people to solve complex problems that
affect the objectives of one or more compartments.
-Cooperation between stations on the same hierarchical level, but in
different compartments in order to achieve complex joint actions. Relationships
are called "bridge".
-The control appears and functions between specialized departments, on
control, such as the Internal Financial Control, Technical Quality Control and
other departments.
-Representation among top managers and representatives of professional
organizations, unions, domestic or foreign.
5). Level (level) hierarchical organizational subdivisions are all located on
the same horizontal line and the same distance from the top management of the
organization. The number of hierarchical levels differ depending on:
-Size organization,
-Complexity of,
-Managers, managerial competence.
6). Share hierarchical (control area or management time) the number of
people (employees) led directly to its managers. The size is influenced by the
number of hierarchical levels, which is in inverse ratio (the greater number of
hierarchical levels, the size ratio decreases hierarchical).
Note that it is necessary to make a correct sizing of the weight hierarchy.
We therefore have sought to avoid:
-Hierarchical weight-sizing, which leads to difficulties in coordination and
control exercise,
-Underdimmensionnement it, that increases the number of heads and
therefore increase costs paid managers.

3.12. COORDINATION FUNCTION

Coordination function answering the same questions as the function of
organization: what resources and means and how it can achieve the planned
objectives, indicating that the coordination function has the evidence in detail and
include shorter periods of time. Coordination is therefore a dynamic organization
in detail and planned activity aimed at shorter horizons. Why is called guidance
or advice.
Coordination function is all work processes harmonizing business decision
and action and its subsystems, the projections and established organizational
system. Cycle management process, beginning with planning, continues with the
coordination of management, involving directing daily activities. Need for
coordination is due to:
-Complex and dynamic business organizations that are dynamic and not
static systems;
-Novelty human reactions;
-Existence and action of factors (endogenous and exogenous) whose
influence on organizations comes as result of actions that have planned and
organized disruption.
Permanent influences of these factors on the organization require routing,
guidance, coordination activities, aiming thereby to adapt the organization to
environmental changes (exogenous factors) or neutralizing action
dezorganizatoare, disturbing endogenous factors. We can say that nature
antientropic management can be particularly the function of coordination. Unlike
self-regulating biological systems, social systems (organizations) to reduce
entropy (state of decay, disorganization) is the result of conscious control held by
managers and appears as a function of management, namely the coordination
function.
Coordination comes to know, to track changes occurring in the
organization (changes in materials, technology, the people, the environment).
Coordination is to, on the one hand, maintaining organization coordinates
activities planned (to achieve the objectives set), and on the other hand,
continuous improvement activity (by human effort, financial daily), coordination
and intelligence effectively to objectives planned.
Coordination as a function of management is primarily a management
activity, constant guidance and operational activity. It is the least formalized
management function. It depends, crucially, to: the psycho-sociological qualities
of leadership of the manager, of his human side, the ability to know and
understand human nature, inspire and necessary requirement, to motivate
people, charisma, personal example, professionalism, fairness, consideration.
Coordination takes two forms:
-Bilateral coordination takes place between a boss and a subordinate
("face to face"). This form of coordination has the advantage that prevents
filtering and distortion and ensures rapid feed-back. Also, the disadvantage of
time consumption.

-Multilateral coordination takes place between a leader and two or more

employees. Is a concurrent process communication to multiple people, and is
carried messages, often in the form of working meetings.

3.12.1. COMMUNICATION,
COORDINATING

AND

SUPPORT

PREMISE

Coordination is carried out, in all organizations, communication.

Communication is part of all components and actions of organizations.
Communication is the transfer of information from an issuer (sender) to a
receiver (receiver) in terms of understanding the correct message to the recipient
of the content. Communication is the concrete form which achieves a
coordination group of people in an organization. A need for effective
communication requires the same meaning in the two subjects of communication
(issuing and receiving), the significance of the message subject of
communication. If there is common understanding of the message, state that
there is an effective communication (real) and effective.
The role of communication is to unite, put together, integrate activities.
Communication is, therefore, the way in which people are integrated, controlled
and directed (coordinated) to achieve a common goal. Communication goal is to
produce favorable changes, to influence the actions that ensure the prosperity of
the organization. For example, businesses in foreign trade require information
essential for the decisions to be taken on the production of a variety or another,
from lots manufactured and quality for export. All they require information and
communication.
Communication is vital internal workings of the organization, as
communication integrates all management functions. Communication link to the
organization of the external environment in which it acts. Communication is vital
in any organization, the communication managers can determine the internal
organizational climate and can influence employee attitudes and behaviors
through continuous communication with them. Therefore, managers are bound to
achieve effective communication with subordinates and vice versa.
Communication is a two-way process: - Head - subordinated and subordinated Chief, in which each is, in turn, issuing and receiving of messages.
The communication process is how an issuer (sender) contact a recipient
(recipient) with a message. The Issuer, having in mind an idea, an action which
seeks to determine a change in the recipient, an encoding in an accessible
understanding of the recipient. Encoding letters and words is the language used
by two subjects (issuing and receiving), but can be represented by simbolulrile
computer language. The message can be expressed: oral, written or may be non
verbal. Transmission channel is the channel through which the message and link
the two subjects of communication when communication is not direct. Message
transmission channel can be: a memoir, a letter, telegram, fax, phone, etc..
Each transmission channel has advantages and disadvantages. Issuer
must choose the best transmission channel, to ensure effective communication
and effective. Sometimes, you can use multiple channels broadcast the same

message. For example: two people can set the phone an agreement, then, is
confirmed by fax or telex.
Recipient receives the message and be able to able to decode and
understand its true meaning. A communication characterized by clarity, accuracy
can be achieved only if the issuer and the receiver gives the same meaning of
symbols that compose the message (eg a message in English require a recipient
who knows the language). Interference or noise are elements or factors hindered
communication and manifests in all components of the communication process.
Thus, noise in an office can prevent the development of clear ideas. Can be
coded wrong and sending a message can be wrong due to the poor reliability of
the transmission channel (eg a phone that streams). Communication within an
organization, a key issue is the use of technical jargon or professional, can not
understand the message recipient, if it is not yet familiar with the jargon.
Communications can be classified according to several criteria:
a). After purposes of movement and position of the issuer in relation to the
recipient, the communication can be:
-Communication descending (down) - circulating information on
hierarchical lines from upper levels of management at lower levels (Head subordinate). Used for:
-Planning and organization of work,
-Training staff,
-Transmission of decisions.
-Communication upward (bottom up) - the information is either
feed-back to incoming messages or reports of subordinates on organized
action. Are essential for active control.
-Communication horizontally or diagonally - the messages traveling
between people at the same hierarchical level (horizontal) or different
hierarchical levels, but distinct hierarchical lines (diagonally). They are
designed to allow an exchange of information between various
departments and employees of the organization.
b). After transmitting the message system, communication can be:
-Oral communication is most commonly used. Most of the
messages are passed on orally organizations (75%). This type of
communication allows direct contact between employees and between
them and people outside the organization. Advantages of oral
communication are: fast, immediate response reaction.
-You can ask questions and can clarify issues;
-Can be obtained immediately the effect of message recipients;
-Subordinate feels he is being given importance.
-Disadvantages of oral communication are:
-Time-intensive,
-Accuracy of messages sent and their significance can not be clearly
established later;
-Lead to erroneous actions (in case of a misunderstanding of the
message).
-Written communication has the advantages:

-Posts can be kept as evidence of clarity and accuracy of message;

-Promotes uniformity in the actions and procedures for many people;
-In some cases, can reduce the cost of communication (by saving time).
Disadvantages of written communication are:
-Accumulation of large volumes of messages, many papers associated
with the idea of bureaucracy in a negative way;
-In case of your post Inability issuers formulation messages, the message
can be ambiguous;
-Feed-back is not right.
-Non-verbal communication is achieved by: facial expression, mimicry,
gestures, body movements. This can be a support oral communication, being
performed by facial expression and can support the message, sometimes,
however, may be inconsistent with the message.

3.12.2. ORGANIZATIONS IN COMMUNICATION NETWORKS

Communication network is a structured system of information
transmission. The most common types of communication networks are:
-Wheel-type network - communicate with each person in the center. This
type of communication network characterized super-system.
-Chain-type network - the third person, for example, I only communicate
with the person through the second. This system creates hierarchical lines.
-Circular network - each side communicate with the other two. This
relationship reflects a certain decentralization of management.
-Open-network, multi-or star - each communicate with any other person,
making a free exchange open messages. This type of network communication is
specific participatory management system with a high level of decentralization of
management, where decisions are taken collectively by employees participation
in decision making.
Type of communication network has a great influence on the organization
and management organization (centralized or decentralized) and expressed and
practiced management style (autocratic, participative and permissive).

3.12.3. BARRIERS TO COMMUNICATION

Causes communication barriers are limiting or are incomplete or blocking
communication. Communication barriers exist in all parts of the communication
process. Depending on the causes of these barriers to communication, they are:
barriers to interpersonal communication and organizational barriers.
A). BARRIERS TO INTERPERSONAL COMMUNICATION
These barriers are due to several causes:
-Lack of real information (messages "poor") - because these messages
include poverty of words, ideas, message inconsistency, significantly limiting
effective communication. This barrier is often when there is a communication
plan. Usually, many people begin to communicate without knowing the objectives

of communication, order information to be transmitted, without thinking

coherently about what they want to convey message and consequently
impoverish message.
-Ignoring the information, not taking into account the information provided,
considering that they contradict knowledge we have about it. For example:
manager secretary announced that the employees are dissatisfied with the
salaries. Manager does not take into account, because he knows otherwise, but
this information is older than 8 months. Not taking into account information over 2
days manager faced with a labor dispute.
-Evaluation of the source (the originator of information) - the meaning and
value messages are popular, often depending on the issuer's credibility: if the
issuer is credible, the message will be heard with great interest and receptivity.
Otherwise, the message is impoverishing.
-Different perceptions - people from different socio-cultural backgrounds
have different experiences, differentiated value systems that can cause different
perceptions, influencing communication.
-Semantic distortion - not a few words can have different meanings for
different people with insufficient training level (eg the word "fortuitous" is
understood differently by different people)
-Disturbances (noise), such as conversations, traffic street - they can
disrupt the reception of the message and can make.
B). ORGANISATIONAL BARRIERS
These barriers are due to causes such as:
-Levels of management (hierarchical levels) can influence the accuracy,
clarity and volume of messages sent and / or received. Common are:
-Phenomena of distortion - involving intentional distortion of the
message;
-Filtering phenomenon - involving distorted message to the people
from passing information that add or omit certain components intended
message.
-Area control (hierarchical or share driving time) is the number of people
directly subordinate to a manager. May influence or reduce the communication (if
it is too large) or enhance communication, causing even override the
subordinates (if too small).
-Hierarchical position occupied by the issuer and the recipient. If the
distance is greater or less inhibition of subordinates can occur when the head
forward message containing negative effects or deficiencies in the activity
(especially if the boss is authoritarian).
-Failure to obey a person associated with premature evaluation of the
message and the issuer.
There are many people who speak, but few listeners. Listening is a
fundamental requirement of communication, it requires full attention and selfdiscipline. Listen not only to hear. Use your ears to hear, but need to listen to the
mind and soul. Listening is a conscious act that requires will and not simply a
passive and decipher the sounds. It makes the communication.

Recommendations for effective communication:

-Stop talking.
-Put the speaker in mild cases.
-Tell the speaker that you want to listen and pay them interest.
-Remove noise.
-Try to understand the speaker's point of view, even if initially you
disagree.
-Be patient, listen patiently, says that even if you do not like.
-Stay calm. A hedgehog will only negative aspects of communication.
-Ask questions and show encouraging speaker listen with interest.
-Be withheld criticism, as this will put the party on the defensive and will
not display as intended.

3.12.4. POWER
Power in a company is given the general relations that allow an individual
to change another's behavior or others. Power is a measure of interpersonal
relations, an asymmetrical relationship between individuals in relation to a given
situation. Ascendentele power is provided by the following:
-Physical force,
-Personal qualities,
-Skill in a particular field,
-Economic resources,
-Institutional authority.
Influence is a deliberate act by which a person attempts to cause another
or others to think or to commit an act that one would not think or do. This is
possible only when power is based on. Meanings given in his daily influence can
be negative or positive, the negative influence is perceived as a manipulation in
order to deceive, based on lack of scruples. The positive influence of quality
granted to punish and limit ambiguity and lack of efficiency standards because of
the prestige, the power they hold certain individuals.
DEFINITION: The authority is entitled to use the power of the behavior of
others, it stems from the role of official position.
Authority is a species of type near-power, which can exericita and other
than the official channels. In terms of authority Psychology can be considered as
legitimate power, exercised not as a brute force, but as a force that can be
trusted, a force founded on rules and limited in scope for the exercise. Authority
has the following features:
-The power objectives, objectified by rules, regulations, customary and
symbols.
-At its base lies the consent and compliance.
-Involves a hierarchy of social roles.
In the shipping firm stand for the power and authority influence an
individual exerts on others. Power becomes authority when it is legitimated,
official and accepted. The Authority may recognize only a right to remain

powerless, the ability to influence others. Informal leader is one who has power
but not authority, but the manager is the person who is granted authority, that
can be left empty when essentially lacks qualities, skills and knowledge.

3.13. MOTIVATION STAFF

On this basis the company has a great importance due primarily activities,
the requirements imposed by national and international law on the organization
activities, salaries, etc.. Incentive structure within a firm based on the following
aspects:
1). Material and salary as follows:
-Gains salary.
-Job security.
2). Additional advantages, features and gratuities received:
-Ensuring the tickets table.
-Duration of leave.
For those of management:
-Trips abroad, business meetings.
-Graduate training courses paid by the company, etc..
3). Psychosocial deriving from the position held:
-Respect and social status.
-Prestigious companies locally and internationally.
-Participation in decision making.
Efficiency of managers to train his staff is given the following aspects:
-Salaries were negotiated as both global and individual
-Number of employees is almost constant and has a seasonal
fluctuation, that is not massive layoffs.

3.14. HUMAN RESOURCES ACTIVITY

Human resources are all physical and intellectual aptitudes native, along
with knowledge acquired through learning, training and experience in active life
and used in specific activities of each company. Drawn and used in activities is
the human resources firm decisive factor of production, whose active and
decisive role resides in the following:
-Produce and reproduce the other factors of production (natural resources,
materials, capital, information resources) and their combination provides an
effective manner.
-Perform a decisive role in the transformation of natural resources into
goods and services, representing only factor of production able to produce new
values.
-The only factor generator of creativity and innovation.
-The only resource-endowed with the ability to know and overcome
limitations.
-The human factor is only able to ensure coherence and rationality of
economic activity and to contribute decisively to increase efficiency.

Integrated human resources company shipping activity is present in an

inhomogeneous structure, with components having the qualifications,
specialization and various hierarchical positions, different personality traits to be
linked to business objectives. Human intervention in the company is the means
of management tools, including a system of rules is important: labor, personnel,
management, maintenance, and organizational structures that enable and
facilitate the mobilization of personnel, cooperation, linking individual interests
with the company, all leading to increasing use of human resources. The
company claims the personality and individual results that formed. A person with
a valuable qualification is a really good "assets" of the company and
management ability to concentrate high-quality staff is a key strategic factor.
Human resource management aims to improve continuous performances
of all employees and their ongoing cooperation to improve the quality of business
operation in order to achieve organizational mission and objectives, to ensure the
viability and long-term profitability. The main objective of human resource
management is to find ways of integrating staff. In view of integration is the whole
human resource management methods which seek proximity or coincidence of
interests of individual employees objectives.
Integration goal is to guide the employees energies towards the objectives
company, that company's overall integration strategy. The means used to curtail
sources of tension and to stimulate factors that motivate staff, develop a sense of
belonging to the company, etc. .. Therefore it is considered that the best
companies are those that management establishes with employees technological
changes, labor content, changes in internal social relationships.
Technical methods and procedures for integration of employees in the
general policy of the company are the following:
-Management by objectives.
-Shareholder-employees.
-Incentive and promotion systems.
-Quality Circles.
-Identify a company's culture.
-Develop a project company.
-The formation and development of staff.
In essence, human resource management focuses on three priorities as
follows:
-Adaptation (fitness) qualitative and quantitative human resource needs of
current and future business.
-Integration of the objectives of profitability and business development with
the objective of human development.
-Optimizing the performance of human resources for their participation in
the overall objectives of the company.
Human resources function company has a twofold purpose:
-Makes integration of social objectives in the general objectives of the
company by linking human development and social needs with economic
constraints of the company.

-Coordinates that are grouped into ten areas as follows:

-Personnel management,
-Personnel management,
-Calculation of personnel costs,
-Vocational training,
-Social development,
-Information and communication;
-Improved working conditions,
-Social relations,
-Top leadership, advice on personnel management,
-External relations.
a). Administration staff includes:
-Record staff:
-Documentation of individual, personal records,
-Registration personnel movements,
-Statistic livestock, etc..
-Application of laws and regulations in the firm,
-Administration of remuneration:
-Wage-setting and tracking individual
-The first,
-The deductions from wages, etc..
-Calculation of social spending on pensions, unemployment, etc..
-Computation and distribution of social benefits for company
employees.
b). management staff includes activities related to:
-Preparation of forecasts of labor demand:
-Quantitative
-Quality,
-The specialties,
-Qualification, etc..
-Recruitment.
-Compliance staff.
-Procedures for the valuation of work and employees who occupy
them.
-Implementation of decisions on staff:
-Promotion,
-Changes in function,
-Enforcement,
-Layoffs, etc..
c). calculation of personnel costs as follows:
-Develop a flexible remuneration system and stimulating,
monitoring its implementation.
-Develop and track budget personnel costs.
-Finding ways to reduce labor costs, the most rational use of
personnel.

d). Professional training includes several main tasks:

-Identify needs for professional training.
-Develop plan for training of employees.
-Develop the actions outlined in the plan of vocational training.
-The performance.
e). social development refers to the following tasks:
-Rational organization of work to the level of each job.
-Define the workplace.
-Adaptation of the workforce to the requirements of new
technologies and changes the volume of activity in the market
requirements.
-Promotion of participatory methods (quality circles).
-Application of tools for financial participation (employee
ownership).
f). Information and communication include a series of activities designed
to provide both synthetic and regular as company management and employees
on:
-Walking company and business.
-Technological, market and organization of the company.
-Human resources, quality, structure, incentives and their
performance.
-For this purpose use different means:
-Diary company
-Display,
-Audio-visual systems,
-Work meetings, etc..
g). Improving working conditions, they relate to priority:
-Keeping all leading to relief work.
-Following-up the security and labor Igen.
-Social-organization of the activities (canteens, restaurants,
shopping holiday and leisure).
h). social relations that focuses on solving several problems related to
various meetings or management meetings as follows:
-Meetings with staff delegates (the driver or owner company HR
function).
-Meetings with unions.
-Annual negotiations of the collective work.
-Negotiations on social protection, etc..
-Examination of employee claims.
-Resolving complaints and requests submitted by employees or
their representatives.
-Develop rules of procedure.
i). counseling leadership of the personnel management issues regarding:
-The procedures and methods of personnel management.
-Treatment of individual cases (through training, professional
orientation specialization).

-Conflict resolution individual.

-Resolving disputes.
j). external relations or the Human Resources departments of a firm is
determined by:
-Organizations and bodies dealing with labor and social issues.
-The trade unions at branch level, sub-branch or branch
organizations.
-Education institutions.
-Local organizations, etc..

3.15. CONTROL COMPANY ACTIVITIES

Definition: control-control function includes a mix of assessment results,
determining deviations from targets, identify the causes that generate them and
adopt measures to eliminate violations.
In-house process control based on the following aspects:
-Specific technical performance standards of the industry.
-Evaluation of performance.
-Comparison of results and setting standards deviations, their
causes.
-Adoption of corrective measures.
Types of controls by shipping company managers are:
1). After that time performed:
-Preventive control,
-Operational control,
-Postoperative control.
The most effective type of control in this type of firm is preventative, which
is mainly designed to prevent negative situations. Operational control is achieved
by dispatching activities as they unfold. Postoperative control can be monthly,
quarterly, half yearly or yearly schedule.
2). After the scope are:
-Total control,
-Selective controls.
Total checks are not performed only rarely are used the most selective. In
the company are also used:
-Internal Control:
-Vetting employees,
-Technical quality control,
-Control of the Audit Committee, etc..
-External control:
-Financial Guard.
-The Court of Accounts.
-Police.
-Customs.
-Port authorities, etc..

3.15.1. CONTROL FUNCTION CONTROL ROLES

This function performs several roles such as:
-Ensure that the objectives.
-Looks at the changes in the environment.
-Accelerates the production cycle.
-Influence the process of adding value.
-Facilitate the delegation and teamwork.
a). The important role of this function is to ensure company objectives. In
exercising this function highlights the progress made in achieving the company
and its component links, and factors that are barriers to achievement. Based on
this information managers can adopt measures to regulate the activity, where
jams. Managers perform their functions by watching how the achievement of
objectives and tasks assigned to each employee, take action to ensure their
achievement.
b). Control-regulation should highlight changes in the environment, market
your product or service company that is:
-New products appear,
-Technologies, development of operating their
-New opportunities arise, new business
-Record the financial bottlenecks, and some suppliers can not meet
contractual obligations.
In exercising this function managers adopt those measures that maintain the
dynamic equilibrium of the system.
c). information specific to this supply-cycle functions can accelerate
service delivery. How quickly the market responds company shortening overall
business cycle is an important factor in business competitiveness. This function
highlights the factors that delayed supplies, transportation, sales and allows
managers to take action to release these business processes, which accelerate
the company's response time to customer needs.
d). Another role of this function is to provide information necessary
process of adding permanent value. This information system highlights factors
that add value to products or services, the barriers that hinder adding value.
Based on this information managers regulates business activity, by exploiting
strengths and limiting or eliminating deficiencies.
e). Also it has a role in facilitating the delegation and teamwork, so that in
modern management changes-regulating nature of control processes by
encouraging employees to work as a team and take over some tasks of
Manager, accompanied by appropriate powers and responsibilities.

3.15.2. WORK SETTING

DEFINITION: Setting is the set of actions taken by the manager to maintain
system stability, ie its capacity to achieve its goals.
Adjustment mechanism is based on inverse output representing the entry
action, self-regulating system through which kept their stability. It is considered

that an economic system is stable when independent of any change in input or

disturbances appeared in the system, it maintains its output state. The role of
regulating the business it has its manager or managers, who maintain order
status system and its reorganization. Adjustment is based on information
recorded deviations from the:
-Goals,
-Norms,
-Norms,
-Quality-standards,
-Information on the causes that generated deviations.
By adopting control measures to ensure planned objectives showing the
fundamental role of control-adjustment function.

CHAPTER 4
MODERN MARITIME SHIPPING COMPANY
4.1. INTRODUCTION
Shipping company is set up, organize and carry out a series of activities
for freight and passengers, the seas and oceans. Shipments of goods or
passengers from the need of the global economy, but the main purpose of
establishing a maritime shipping company it represents the economic efficiency
of investment, ie profit, so far as and perspective. In order to achieve economic
efficiency must be sought a series of intensive methods of profitability and
modernization of transport, methods applied to existing means of reduction of
losses, to obtain maximum output. Shipping company is regarded as an
important component of a state economy, as it possesses a very important role
for achieving exports and imports of goods, passenger and rolling stock. This
makes a series of links between ports, across the country of origin of the vessel
owner (owner) and a number of countries, from different parts of the world.
Of economically a maritime shipping company is a company providing a
range of transport services, ie the movement of goods for internal users and
external linking producers and consumers, regardless of the type of cargo by
vessels maritime routes, waterways, between different ports. From a legal
shipping company is established as a firm, company or business association
representing the interests of individuals or legal entities, operating under state
laws, national and international regulations based on the shipping. Legal
personality is governed by statute are provided:
-Pairing mode,
-How to establish and obtain legal personality,
-Rights and responsibilities,
-Rights and obligations of shareholders, directors,
-Bankruptcy or liquidation mode, etc..
After the use of shipping companies ship can be divided as follows:
-Liner shipping company.
-Tramp-shipping companies.
-Mixed-shipping companies.
a). In the first category of companies conducting cruises lines ships,
routes or established relationships. Shipping on the "line" means making regular
trips between certain ports previously established by the shipowners, charterers,
manufacturers, users and intermediaries (brokers). The contracts these lines are
kept as navigation routes for long periods. These contracts are subject to special
legal regulations, but also economic terms for this type of transport.
Particularities of this type of shipping are:
-The voyage between ports.
-While standing in the port, ie time:
-Ship-loading,
-Unloading vessel.

-The technical condition of the ship.

-Good airworthy condition.
-Special provisions relating to:
-Delays in loading / unloading and penalties
-Delays during transport and penalties, etc..
-Terms of payment services (freight).
b). Navigation tramp ("bum") vessels have no established route, are sent
to transport different routes depending on the available goods are in a port or
another. In this traffic, navigation routes, freight and economic efficiency depend
navlurilor stock, supply and demand of maritime transport market, a series of
economic, political or economic level relations.
c). No shipping company can be established only for a certain type of
transport. Even if the current trend is to over-specialization of ships due to a
number of significant advantages, reality has shown that marine market and the
firm contracts may be concluded so that ships can go disastrously easy to enter
in "tramp". There are also ships after a certain number of voyages tramp can be
contracted for a certain line. So in a shipping companies to consider all options,
depending on market developments sea.

4.2.
BASIC
CONDITIONS
NAVIGATION COMPANY

FOR

ESTABLISHMENT

OF

To set up shipping company should be considered because a number of

specific conditions imposed by maritime transport characteristics that will
influence the choice of company, because they offer by way of organizing and
operating a number of advantages or disadvantages in terms:
-Executive.
-Financial.
-Tax.
-Social, etc..
Basic conditions for establishment and operation are as follows:
a). existence of a large capital to start, not the foundation of the company,
but it is necessary to:
-Ship-building.
-Buying ship.
-Arming, equipping, manning, etc..
-Hiring administrative staff of the company.
-Hiring crews.
-Payment of fuel, lubricants, water, etc..
-Ensuring the ship.
-Payment of port charges, towage port, quay, etc..
-Provide a special reserve fund (exceptional), for example:
-Damage to cargo during the voyage, the fault of the owner,
-Joint failure,
-Damage private
-Remuneration assistance,
-Sea towage,

-And rescue, etc..

b). liability of parties to the association and foundation of the company, but
especially for its administration. In the context of the society based on contract
and status are taken into consideration so as to limit and correct dose of
management responsibilities and rights defense associations. Liability resulting
primarily from higher value of ships, on the endowment, but also because the
goods are transported goods for a certain period of time owner responsibility,
being at risk of sea transport.
c). Choice management team, administrative staff, and crew selection.
The management team must be composed of individuals with experience in
management in maritime naval officers with experience who know the problems:
ships, transport contracts, relations with intermediaries, etc.. Administrative staff
is important for the normal, legal activities. Functions and their number must
match their tasks, to achieve their correct and timely. The shipping company
activities are ongoing so that management and administrative staff should be
used to working in teams, shifts, under stress, to take quick decisions, to solve
urgent business problems, especially those vessels. Problems are more difficult
as crews from a voyage to another, from one period to another it changes or at
least part of the crew. This means firstly a permanent fluctuation of people, then
a number of people waiting for boarding, organizing exchanges times and lower
costs as the company.
d). Relatile and contacts with manufacturers, sellers, consumers, dealers,
brokers, port operators, insurers, port authorities, etc.. Usually the shipping
companies are set to the emergence or development of demand for transport,
the existence of party goods, the demand of customers or producers to expand
markets for their products. It is therefore important to know the main elements of
the two types of commercial maritime navigation: the line and the system
"tramp".

4.3.
ORGANIZATION
COMPANIES

MODERN

MARITIME

SHIPPING

This is an activity that must be given particular importance, because the

organizational scheme that will take the company management will be "skeleton"
that will support the entire activity of the company. To achieve this must be
mobilized all available forces, to reach the best solution to respond objectives. In
the design of the organizational structure of the shipping company may consider
the following steps:
-Goal setting activities.
-Identification of minor or major obstacles.
-Development of various types of structure.
-Comparison of benefits for different variants.
-Choosing the optimal structure.
a). Targeting work is develop the following:
-Identify sectors that contribute to achieving organizational business
objectives ie:
-Departments,

-Sections,
-Sectors,
-Office,
-Functions,
-Positions.
-Collect all information related to field of nature:
-Legislative: internal and external
-Technical,
-Tax, etc..
-Establishing organizational tasks for each section,
-Hierarchical link-establishment,
-Establish functional connections,
-Establishing the main lines of action.
b). for barriers involves the objective nature and size of minor obstacles,
especially the major influence the company. This is an important and extremely
complex because the more there are many obstacles, the more intensified focus
is required to identify these barriers to finding those solutions to avoid or
overcome them, especially for finding and choosing those types of organization
which can lead to elimination or reduction of their effects. In this situation,
systematic discussion of these options as it may adopt a variant that can lead to
the elimination of obstacles has the effect but after a certain period of time,
negative effects of another kind of obstacle to meeting.
c). Develop various types of structure are carried out starting from the top
management level, go down the ladder to the levels that reports directly to senior
management and executive levels till then. This means that lower levels depend
on decisions taken at the higher levels. The analysis here should be considered
in as many possible options and their placement on hierarchical levels optimal,
because it depends on speed and efficiency of information transmission,
processing it, making decisions, the answer to, etc..
d). Comparison of benefits for different versions based on the fact that the
shipping company must seek direct benefits, profit, business development,
continued investment, new jobs and others. The main aspect of these
comparisons is that all benefits sought must be carried out under optimum
conditions of the law.
e). Choosing the optimal structure is performed after several variants were
developed, this structure will be implemented right from the start of the company,
which is contained in the rules of procedure or operation. As their activities this
structure can be changed, improved or even changed completely.

4.3.1. THE MANAGEMENT STRUCTURE OF A COMPANY

SHIPPING INDUSTRY, ESTABLISHED AS limited liability companies
Maritime Navigation Company established as a joint stock company must
respond shipping characteristics, the purpose it was established to conduct
activities in optimal conditions at police headquarters and the board. In limited
liability companies, regardless of the nature of capital, the General Assembly of
Shareholders is acting on the following aspects:

-The strategic action of the company.

-Check and approve the balance sheet.
-Establishment of company funds: investment or development, reserves,
dividends.
-Election Board.
General meetings may be ordinary or extraordinary, the ordinary shall
meet within 3 months after the financial year. In line with the company bylaws
and Ordinary General Meeting shall:
-Listen to the directors and the auditors report,
-To discuss, approve or modify the balance sheet,
-To set the amount of dividends,
-To adopt a decision on management administrators,
-To elect directors and auditors,
Extraordinary General Assembly shall meet whenever necessary to:
-Prolongation,
-Changing the object of the company or adding new activities,
-Change of the society,
-Increasing the share capital or reduce its
-Early dissolution of society,
-Issue bonds,
-Other problems that require the adoption of decisions critical to the
company.
In practice shipping shipping companies can be managed by one or more
managers. When there are more administrators set up a Board, and when is a
single administrator Administrator is considered unique. Board of Directors may
delegate any of its powers to a Steering Committee composed of elected
members of the administrators. Under Board decisions are taken by majority
vote, and the Steering Committee are taken by absolute majority of votes of its
members. In the Board to elect a president who can be and CEO. This can lead
and Steering Committee. Steering Committee shall:
-To present at the meeting of the Board record its decisions.
-Be responsible for all decisions made by directors, all acts performed by
management or employees.
-To inform the Board of Directors of all violations found.
-To report on the operations performed and others.
At meetings of the Board is convened and the Audit Commission, which
shall:
-To monitor how leadership and management company.
-To verify balance sheet and profit and loss if they are legally established
and correspond with the accounts or records management.
-To test if carried out properly assess the company's heritage, to prepare
the balance sheet and celolalte documents.
Audit Committee members have certain obligations as follows:
-To make each month, unannounced inspections of the cashier,
-To determine whether the securities or assets that are owned company or
were received from third parties (mortgage, bond or deposit)

-To convene an ordinary or extraordinary General Assembly if it was not

made by administrators,
-To pursue law enforcement in all actions and decisions of the company's
efforts,
-To pursue the contract terms or provisions of society, by administrators,
-To bring to the attention of managers any irregularities found in the
management company or the violation of laws and statutes, and when the
situation requires it to them to the General Assembly of Shareholders.

4.3.2. COMPANY
STOCK

ORGANISATION

SHIPPING,

COMPANIES

Organization of the shipping companies at senior levels is as follows:

-Variant I.
-A-second version.
-Option to III.
A). Version I used is the major shipping companies from the '80s and '90s,
which was next managerial structure (organization), Figure 4.1:
-The General Assembly of Shareholders.
-Board of Directors and the Audit Commission.
-Committee.
-President.
-CEO.
Deputy-Directors:
-Director of ship operations.
-Technical Director.
-Financial Manager.
-Commercial Director.
-Director of Human Resources.
This was a very large structure, heavy conservatorist often ineffective,
reflecting a certain specific managerial concept that period. These functions were
included in the rules of procedure or operation which have been entered all the
powers, duties and responsibilities, hierarchical and functional structure. Maritime
Navigation Company was structured in the following departments:
-Operation.
-Technical.
-Economic.
-Commercial.
-Human Resources.
All departments were structured: departments, services, departments,
offices, positions.
a). Director General is directly subordinate to all other directors. By
organizing the legal status or the rules of procedure are provided a series of
compartments, which are required to provide general director means they are:
-Legal department,
-Compartment of foresight, strategy and resources
-Advice on various issues.

Legal Office is to represent the company in courts, to ensure the legality of

trading of the company through participation in:
-Drawing up contracts for the company,
-Drawing up contracts of association,
-Preparation service contracts,
-Preparation for taking over-delivery protocols,
-Preparation of the reports of fighting litigation,
-Analyze and enforce contractual discipline in order to prevent
misunderstandings during pre-litigation or during the execution of contracts.
Legal Office is responsible for:
-Compliance and enforced within the company through advisory opinions,
they give on their legality,
-Relations with law enforcement,
-Keep track of legislative acts specifying the publication which can be
found: laws, decrees, orders, instructions, rules, guidelines, etc..

-Studying the content of these laws, correlation and interdependence of

the force,
-Notify the departments concerned of appearance and amendments to
legislative acts,
-Legal advising company employees.
Department of foresight, strategy and resources dealing with issues of
economic forecasting, the development of medium and long term strategies for
obtaining material and financial resources, human as well as for recruitment,
standardization work, etc.. Counselors are experts in different fields of rule of
activity, they provide technical assistance, economic and legal (can be specialists
in maritime law, litigation), which can be derived from company employees or
specialized companies.
b). Director for Operation of Ships is the leader in direct charge of the
situation and the operational status of ships. The subordinated include:
-Sections of vessels.
-Service operation.
-Service navigation safety.
-Tracking service, surveillance or monitoring station.
Within these services are a number of offices and departments such as:
-Office maintenance
-Department radio communications
-Office and fire prevention,
Section of ships represents an economic unit composed of a certain
number of ships, by type, size and number, type of operating navigation, liner or
tramp. Depending on the number of ships, their type, condition and age of their
technique, sections can be reduced or increased in number and in their number
of ships can be variable. Service operation has an important role in maintaining
appropriate technical status of the ship. The main tasks of this service are:

-Programming partial or capital repair works of the ships, the shipyards of

the country or abroad.
-Choosing the best offers for repairs, following the correlation between
cost and quality of works.
-Surveillance of the work performed by the ship yards, workshops, etc..,
-Timeliness of repair under contract.
-Providing technical documentation specialist on ships, installations or
equipment, make it available to repair sites.
-Maintaining links with the Naval Authority, Register of Shipping,
shipyards, companies providing maintenance and repair services.
-Control of maintenance and repairs performed by means board crew,
maintenance of the navigability of vessels in accordance with rules and
international conventions.
-Propose sale of ships and their disposal within the time provided by
applicable law, terms of warranty or service at sea.
Navigation safety service has the following tasks:
-Take all measures for the preparation of ships to carry safe voyages as
follows: supply of materials, fuels, oils, spare parts, food, water, etc..
-Cargo in safety,
-Stowage, lashing and adequate protection of goods.
-Guidance and control, training activities for compliance with work safety
on board.
-Guidance and control for compliance with fire protection and fire.
-Guidance and control board to prevent marine pollution.
-Prepare work plan and schedule activities on board.
Dispatch service shall:
-Adjusts to permanently ships as follows: where they are located, that
performs operations on board the cargo load, destination, travel time and arrival
at destination.
-Stay in touch with the master using radio-technical means, phone, fax,
telex, etc..
-Inform the management company immediately of any situation occurring
on board or in connection with them.
c). Technical Director is the leading company's technical department,
which is in charge the following services:
-Technical service.
-Service investment, modernization and development.
-Service supply road.
Technical service is very important because it gathers experts in the fields
of art shipping company, operating, maintenance and repair. The main tasks of
this service are:
-Prepare plan to repair equipment and facilities on board, depending on
their programming periods provided for current and capital repairs, and the ship,
in port or during the move.
-Calculation of costs to perform all maintenance and repair, their judicious
planning, low-cost and high quality.

-Studying, analyzing and taking all solutions to increase efficiency

installations, equipment on board ships, eliminate losses, reduce threats,
adapting and endowment vessels for Naval Register or IMO requirements, etc..
Investment service, modernization, development deals with the following issues:
-Investigate, study, analyze and prepare periodic reports to the executives, the
company needs for development, modernization, investment in short, medium or
long:
-Construction of new vessels,
-Buying modern vessels, specialized
-Modification of existing vessels and their quick adaptation to new market,
-Purchase of facilities, equipment, modern equipment.
Service supply and transportation issues dealing with regular supplies of
ships with devices, equipment, spare parts, materials, food, etc.. Within these
services there are lots of departments and offices as follows: office
modernization, contracting for office supplies, repair compartment, compartment
car.
d). Economic Director (Finance) is responsible for financial and accounting
affairs of the company. Within this division in the following services:
-Financial Service.
-Accounting Division.
-Service foreign settlements.
The main tasks of these services are:
-The funds necessary to carry out company activities.
-Making all the accounting, recording, accounting and control of receipts,
payments, financial and economic management.
-Develop the company's financial plan (budget of income and
expenditure).
-Calculation of financial indicators, company analysis for understanding
the situation, propose measures for eliminating waste, increasing turnover,
economic profitability, etc..
Within these services meet the following departments and offices: office
salaries, office inventories, compartment plan, budget, economic analysis,
internal audit department. Financial Services is responsible for:
-Develop financial plan in conjunction with the plan of the company.
-Accomplishment of the financial ratios and price-cost.
-Provide funds for the ordinary course of business.
-Up and legal use of company funds.
-Imposing a strong financial discipline in all services and departments.
-Preparation of documents, statements, returns for payments to third
parties.
-Preparation of payrolls.
-Payment of all rights of the company staff.
Financial planning and control preventive role:
-The financial plan to ensure the funds required to create rhythmic plan
and enforces a strict savings regime.

-To perform calculations underlying the economic and financial indicators

on:
-Services provided (supplied)
-Proceeds,
-Economic profitability,
-Payment of taxes by state
-The speed of current assets,
-Distribution of profits,
-Other important indicators for the company.
-The plans, administrative and household expenses.
-To answer the maximum efficient use of operating funds.
-To provide permanent reduction of material costs.
-To adopt several measures to return within the shortest of funds received.
-To prepare and monitor the implementation of budget revenue and
expenditure.
-To verify the legality of expenditures.
-To check and make preventive control of various documents, certificates
(medical certificates, medical aid payroll, benefits, bonuses, etc.).
-To review and provide preventive control visa, financial, currency or
documents in domestic spending, bills to pay:
-Tugs,
-Boats,
-Port charges,
-Toll-channels,
-Costs abroad,
-Brokerage,
-Agent services,
Different materials, supplies,
-Fees for various formalities.
Accounting Division has the following main tasks:
-The use of modern forms and methods of accounting and control of
financial and economic activity.
-Compile and evaluate the company's patrimony.
-Develops balance sheet and its annexes.
Currency settlements service is specific to a shipping company because
its business abroad, the receipts from various companies through international
banking systems, the need to make payments abroad for the needs of ships, by
third parties, etc.. This service has the following tasks:
-Following up the running of the settlement with: providers, beneficiaries,
foreign government authorities, intermediaries, etc..
-Keep track navlurilor received in foreign accounts, performed all
operations and activities necessary for their rapid collection.
-Prepare documentation required for the recording of debits and credit in
foreign currency accounts, make payments to third parties and payments for
ships.

e). Commercial Director is responsible for the company's commercial

department. This department consists of the following services:
-Chartering service.
-Sea-service marketing.
-Agency-service (agencies abroad).
-These compartments comprises a series of offices and departments as
follows:
-Marine insurance-office.
-Bureau maritime disputes.
-Office Protocol.
Chartering service represents one of the most important departments of
the company. It provides employment contracts, shipping vessels, loading,
stowage, unloading and other specific operations. This service coordinates the
search, collaboration, maintain and develop relationships with internal and
external partners of the company. The main tasks of this service are as follows:
-Participates in the establishment of the proposed transportation plan,
along with other departments.
-Undertake ships available, the foreign account and enter into contracts of
carriage.
-Participates in the negotiation and conclusion for different routes or
transport consignments.
-Reply to cover transportation contracts on favorable terms for the
company.
-Participates in the negotiation and conclusion of contracts for charter
vessels.
-It deals with training agents and skippers in contracts to comply with the
terms and avoid litigation.
-Syndicate and is responsible for billing navlurilor on time and in
accordance with the contract for each voyage for each ship or any ship, liner or
tramp, conventional or specialized.
-Keep track of invoices, receipts, in collection or payment.
-Freight charge for journeys made against partners.
-Keep track of voyages made by ships company.
-Conduct research and prepare studies on the effectiveness of journeys
made, services provided by the company, which regularly presents or directly
through the chain, the management company.
-Submit the company's computerized record service data required for their
keeping, computerized information system in the company.
Marketing Service shall:
-Presentation of proposals to assist in management decisions by the
shipping company following areas: transport contracts, price services (of freight),
promote company services, connections with partners, creating and maintaining
relations with public authorities , port agents, banks, manufacturers, etc..
-Design variants of action: immediate, medium term, long term.

-Knowledge permanently: internal and external political factors, economic

climate, structure, strengths and weaknesses of competitive maritime market
trends, anticipate them.
Marine Insurance Office deals with problems due to risk of sea or otherwise,
which are covered by insurance type "Casco", "P & I" or other types of insurance.
The main tasks in this regard are:
-Contacting insurance companies, takeover bids, selecting and choosing
the most advantageous of these.
-Transmission of the main features of ships, date of entry into service and
insurance value.
-The conclusion of contracts of insurance of ships, crew, other persons on
board, goods, fixed assets or other assets of the company.
-Following-insurance payments by insurance companies.
-Preparation of documents and all the reports, submitting them to
insurance companies to obtain compensation.
-Solving social problems in case of distress, injury, damage to property,
loss.
Office deals with resolving maritime disputes maritime disputes arising during
charging, unloading, during transport or in special situations such as:
-Rescue.
-Sea towage.
-A failure common.
-Wreck.
-Drop ship.
-Disposal of goods into the sea.
-Accidents on board.
-Collision, etc..
Office deals with calculation prices for each type of ship freight for different
types of goods, for each line or route in part, for one or more transport for one or
more services rendered. Even the navigation system "tramp" negotiation limits
can be calculated minimum acceptable by the management company expenses
and earning a certain profit.
f). Director of Human Resources (Administration) ensure that a wide range
of tasks in the following areas:
-Service HR
-Recruitment, employment, service crews,
-Executive Office,
The main tasks of this department are the following:
-Calculation of staff positions, specialties, ships.
-Calculation of salaries, allowances, bonuses, etc..
-Recruitment.
-Selection and employment.
-Promoting shipboard personnel functions.
-Checking crew.
-Prepare the records of the staff, keeping and filling them regularly.

These tasks are assigned to departments, offices, positions or positions

as follows:
-Administrative Department.
-Department payroll.
-Recruiting-office staff.
-Secretariat.
-Service security and order.
-Computerized record-company service.
Among the most important tasks of this department, which distinguishes it
from similar ones from companies with business in dry crew are about as follows:
-Preparation of forms required to obtain exit visas, transit, entry into
foreign countries for crews to carry out exchanges, but also for other company
employees.
-Preparation works for extension permits crew to patents, certificates or
ratings, boats for carrying out works on board.
-Standardization functions, positions and personnel onboard paperwork
for payment (in lei and foreign currency) or other departments of the company,
providing incentives, bonuses, etc..
B). Version to II, is used in the late '90s. This variant was imposed
primarily by the introduction of new regulations on ship safety by requiring
implementation of Ship Safety Management Code. This code required the use of
procedures relating to ship safety and pollution prevention both the ship and at
headquarters. If you implement this code till there were no procedures and
responsibilities at the company focused on safety and pollution prevention,
currently this is not possible due to restrictive legislation, and companies were
forced to make efforts to adapt to this situation, to make investment the
implementation of the Code on board and on-site. Figure 4.2 is observed
following differences:
-Has been dropped Steering Committee or Board of Directors to reduce
the hierarchical pyramid, flattening it helps eliminate one tier bureaucratic
performance management.
-Position was abolished and replaced with the technical director for the
safety director, a part of department functions were transferred operational and
logistic service and other services have been outsourced.
-A sales manager position was abolished and replaced with the director of
marketing and public relations, being kept only charter service and marketing.
Some companies use the services of brokers and gave up its charter service.
-He was replaced as director of finance director at economic, that person
specializes in financing problems, many companies accounting service is also
outsourced.
-It was abolished as director of human resources and all service
personnel, activity being outsourced to companies crewing, being preserved only
a person who is responsible for personnel in the operating compartment of the
vessels.
-Was reduced establishment plan for reducing costs and increasing wages
of employees liability.

C). Version to III, Figure 4.3, is currently used in some shipping

companies. Function is observed elimination CEO, president and taking over
general manager duties. After this most important function is the director
responsible for safety, which in some companies is the person designated.
Service operation and logistical still having an important role, but some services
have been outsourced logistics.
A function was introduced and the company responsible for security of
ships under the ISPS Code. In the financial department and the service was over
accounting and audit has been outsourced. Service marketing is what is in
"offensive" maritime shipping companies giving special support to achieve a
strong service-oriented knowledge of market and competition. The role of this
service will be increasing in the future.

4.3.3. THE MANAGEMENT STRUCTURE OF A COMPANY

THE SHIPPING, LIMITED LIABILITY COMPANY
Maritime Navigation Company formed as limited liability company differs
from limited liability companies by the following:
-The number of members can not be more than 50 people.
-Can be set up by one person.
-Up capital is less necessary.
-Administrators can be associated or unassociated.
-Liability of members is limited to the social heritage.
-Vote shares depends on members.
-No more choosing the Board of Directors for a sole.
-Number of persons employed is much lower.
-Tasks are many employees may have responsibilities in two or more
fields.
Limited liability companies associated with a number between 2 and 50
people, the administration is done similar to the limited liability companies, except
that the supreme governing body is represented by the General Assembly of
Shareholders. It has the following powers:
-Approves the balance sheet.
-Benefit-sharing features.
-Choose, revoked or download activity directors or auditors.
-Changes the status of society.
-Increase or decrease the capital.
-Does the prosecution of directors and auditors, etc..
Current maritime market there is a large number of limited liability
companies, established to manage a single vessel, a vessel that is representing
a business. Owners have adopted such a solution due to complex reasons, often
following serious situations occurring in connection with some ships to:
-Minimizing Risks arrest other ships following the case, it caused serious
losses.

-Establishment of companies in the country granting flags of convenience,

to avoid tax payments and higher taxes.
-Avoidance of double taxation, if there are no agreements between states,
etc..
As the large shipping companies and large have produced a series of
changes in organizational structure of small companies such as SRL. Some of
these companies having an evolution and change are faster than those of type
SA.
A). Organization of Maritime Navigation Company, limited liability
company, is much simplified to the joint stock company organized as a series of
departments and sections are reduced to the office or even a single employee
who is responsible for field problems respectively. Organization of such
companies may figure 4.4 include the following functions:
-The General Assembly of Shareholders.
-President.
-Sole Administrator.
-Director General.
-Technical Director (Operations).
-Economic Director.
-Director of Human Resources.
All these functions are listed in the Rules of Organization and Operation,
departments are structured and organized:
-Operation of Vessels Department has the following sections:
-Harvesters ship
-Chartering,
And legal (litigation).
-Technical Department which comprises:
-Technical service
-Service repairs,
-Supply service.
-Economic Department (Finance) with the following services: financial,
accounting, service returns.
-Department of Human Resources may include: service crew hiring,
secretariat, office computing.
These companies can make changes in terms of organizational and
structural easier adaptation to new market conditions is quicker, reducing the
staffing or hiring new people is more dynamic. The disadvantage is the fact that
those involved must be well prepared, very reliable, who could solve a large
number of tasks.
B). Structure "a ship - a company". It has become in many cases as a
compromise, but also started for those who "entered" the business. In some
countries with very restrictive legislation such company had started in the 70s
and 80s, but their development has been true in recent years due to tax
legislation, safety and pollution prevention. Current trend of owners is to set up

companies for each vessel and these same people to work that would be where
all vessels registered in the same place and under one flag.
C). Current trend. Due to restrictions imposed by the ISPS Code, the
structure was expanded by hiring a person to answer the problems of the ship
and company security. Some companies have outsourced accounting and
auditing services, and searching for goods is made only by brokers allowed
offerings.

4.4. MANAGEMENT COMPANY SHIPPING

Work in a shipping company can start with an idea, a single man, which
implements this idea. At first the owner (owner) can meet a number of
managerial staff, to plan, organize, coordinate, and to regulate the activity
controloze company to pursue directly the situation of the ship or ships, to
negotiate freight contracts, etc.. With the company's growth, increasing turnover,
need to commit a certain number of people who will fill positions within the
company and have met a number of tasks. In this way appears inevitable
situation you organize, direct and control. One is management of technical ship
or its crew which: is prepared, organized, support certain easements of service
on board the ship, ie a regulation on board service is subject to discipline on
board. Quite different is represented by a management company, a shipping
company, which since its inception is a company with international activities. So
apart from the legal, economic, technical and legal, the shipping company's
foundation is asking a series of specific management qualities in addition to
those required of managers and entrepreneurs operating in the land. These can
be listed:
-Knowledge of maritime market, it has strengths and weaknesses, risks
permanent sea or in port there.
-Knowledge of ships on a board or graduation experiences a marine
educational institutions.
-Understanding attitudes and adapting to team work both at headquarters
and at board.
The owner of a shipping company should not forget:
-The specific sea-life.
-Statements particularly heavy-passing ships and personnel onboard.
-Difficulties and problems arising at sea or in port.
Even if he had founded the company to earn more, to grow their business
must not forget the human factor, the fact that a crew from a small number of
people is directly contributing to the basic activities of company, that this crew is
what ultimately depends on company business. Romanian shipping companies
experience has shown that a number of managers, former commanders of the
ship or officers with long experience on board, when they reached the leaders of
companies who have forgotten they were colleagues, have done nothing for
them do not arrive in desperate situations, they get ill, look through different ports
of the world. These cases prove that running a shipping company requires
besides the many qualities and managerial skills, that special quality of being

"man", to be unselfish and responsible. Romanian commercial fleet was not

"sink" in a war, it disappeared because of its leadership which did not meet a
minimum number of driving rules.
To conduct a maritime shipping company is required including a number of
qualities, skills and knowledge to contribute to the management company can be
listed thus:
-Develop a medium or long term.
-Adopting a policy action, maritime market oriented.
-Planning activities at the company and vessels.
-Coordinating activities permanently.
-Control, evaluation and correction activities.
-Appropriate incentives for the staff.
-Negotiating contracts with business partners.
-Improve the staff of the company permanently, from managers to staff
running the company and the board.
-Continuing analysis of economic and financial results.
-Adopting the correct management decisions.
-Permanent reinvestment of profits, modernization of vessels, business
expansion, extending transport, etc..
-Develop a comprehensive, permanent and effective relationships with
business partners.
-Reliability, honesty and exceptional quality of services.

CHAPTER 5
SHIP MANAGEMENT SAFETY AND PROTECTION
OF THE MARINE ENVIRONMENT
5.1. INTRODUCTION
Documentation of the safety management system ensures compliance
with mandatory rules and regulations, taking into account applicable codes,
guidelines and standards recommended by the administrations, classification
societies and maritime industry organizations. Owner or manager responsibilities
are serious and not leave room for interpretation and conflict between the
company and ship.
The manual is structured to reflect that specific type of ship operating and
management, in an explicit and practical manner, providing a written description
and detailed operating procedures adopted for the use of ships, identifying
potential risk areas and procedures that must be taken to eliminate the risk and
the procedures to be used in case of emergency. Based on this manual
personnel ashore, the owner or administrator, will perform designated roles.
Internal audit procedure manual system is used to audit successful system
operation. Registration information exchange between ships and the company is
an important part of these audits.

5.2. GENERAL PROVISIONS

International Safety Management Code (ISM) Code means the International
Management Code for the Safe Operation of Ships and for Pollution Prevention
as adopted by the General Assembly of the IMO, as may be amended by IMO.
Company means the owner of the ship or any other organization or person such
as manager or agent under a bareboat rental, which assumed responsibility for
the operation of the owner and agreed to all the duties and responsibilities
imposed by the Code . Administration means the Government of the State whose
flag the ship was authorized to fly.

5.3. OBJECTIVES
The objectives of safety management system manual, in accordance with the
Code are to ensure safety at sea, prevention of injury or loss of lives and prevent
damage to the environment, particularly marine and property. Safety
management company objectives are, inter alia, the following:
-Provide for safe practices in ship operation and a working environment
hazards
-Establish safeguards against all identified risks,
-Continuous improvement of skills of personnel ashore and aboard ships
in safety management, including preparing for emergency situations, with
reference both to safety, and as environmental protection.

Safety Management System provides: the rules and regulations required, taking
into account applicable codes, guidelines and standards recommended by the
Organization, Administrations, classification societies and maritime industry
organizations.

5.4. CODE ENFORCEMENT

The provisions of this code are applied to all ships by the provisions of
functional safety management system. Manual safety management system
include:
-Policymakers and environmental protection of the company,
-Reference to instructions and procedures to ensure safe operation of
ships and environmental protection under the law of the country whose flag the
lies and international,
-Defined levels of authority and lines of communication between them and
also of personnel ashore and the crew,
-On the procedures for reporting accidents and non-compliance
-On the procedures for preparation and response in emergency situations,
-On the procedures for internal audit and management analysis.

5.4.1.
COMPANY
POLICIES
ENVIRONMENTAL PROTECTION

IN

SAFETY

AND

The company is required to establish security policies and environmental

protection in which to look at how to achieve the objectives of ensuring safety at
sea, to prevent injury or loss of life and to avoid environmental damage,
particularly the marine environment and property. Policies adopted by the
company in general are the following:
-Economic policy of the company.
-Environmental policy and pollution prevention.
-Policy on alcohol and drugs.
-Policy on health and safety.
-Policy on the safety of the ship and cargo.
To be effective company policies must be applied having involvement of
all employees. In consequence all employees must cooperate with management
in efforts to carry out company policy goals and take full responsibility to work
safely. They should not, through action or omission, to put, conscious life
threatening them or their colleagues.
Company acknowledges that effective communication, along with instructions
and training regarding accident prevention and health and safety practices are an
important part of its policy. The company must ensure the implementation and
maintenance of this policy at all organizational levels, both shipboard and ashore
as.

5.4.2. CORPORATE RESPONSIBILITY AND AUTHORITY

If the entity responsible for operation of the ship is other than the owner
(manager), the owner must deliver the administration's full name and details of
such entity. The company has defined and established, the responsibility,

authority and interrelation of all personnel who manage, perform and verify work
relating to security and prevention of pollution or incident having them.
These are reflected both in the company organization chart, as in the onboard, which are highlighted collaborative relationships between employees and
the job descriptions, a reference model of which is kept in the register of
benchmark job descriptions, the procedure "personal commitment". The
company provides adequate resources and appropriate shore-based support in
order to allow the person or persons designated to carry out their functions.

5.4.3. RESPONSIBLE PERSON DESIGNATED

To ensure the safe operation of each ship and for liaison between the
company and persons on board, the company has appointed a person from the
shore, which has direct access to the highest level of leadership. Responsibility
and authority of the person designated include:
-Implementing and maintaining effective safety management system,
-The development of safety management system audits both on board
and ashore as,
-Investigation of reports of non-compliance with the commanders of ships
and superintendents,
-Analysis, planning meetings and record keeping system on it,
-Ensure that the safety management system is understood the crew and
employees of the company,
-Connection with the commanders on the routine aspects of safety
management system,
-Identify the training requirements of personnel ashore involved in safety
management system,
-Ensure that there are resources and support from the shore, as needed,
-Reporting directly to president-significant aspects of the safety
management system.
This person is explicitly named and all responsibilities for this are
described in the job description for the person designated.

5.5. INSTRUCTION MANUAL FOR FLEET

5.5.1.GOALS AND OBJECTIVES
Instructions for fleet (ship) are issued to the presence of all commanders,
officers and crew company's operating policies. No such set of instructions can
not cover everything and the master has the right to choose actions that must be
undertaken in exceptional circumstances. Commanders will be guided in their
permanent primary responsibilities are life safety, safety of the ship, cargo and
marine environmental protection.
All other considerations are secondary to them. If you need to follow
procedures other than those described in the manual, the company commander
must report this at the earliest opportunity, describing the circumstances and
giving reasons for such action. The goal is to provide instruction framework in
which commanders and officers can work safely and efficiently, but without

inhibiting the initiative and freedom of action when faced with an unusual
situation. Company must make every effort to recruit and retain appropriately
qualified crew and services that are competent to fulfill their tasks. However,
formal procedures are necessary so that all concerned can work together
towards the same goals. Instructions should be reviewed periodically to ensure
they accurately reflect current needs and circumstances.

5.5.2. THE PERSON DESIGNATED BY THE SHORE

Besides the responsibilities defined in the "Safety Management Manual"
designated person ashore may have in addition the following responsibilities:
-Ensure that the instructions are kept updated fleet;
-Keep a copy of the instruction manual for fleet and relevant reports;
-Maintains contact with commanders and officers;
-Inspect each vessel at planned intervals to see if corrective actions were
taken;
Vessel operations, monitor their verification, the minutes of safety
meetings on board, reports deficiencies and non-compliance, system safety
analysis performed by the master;
-Organizing and conducting audits on board safety concerns;
Ensure that the resources and support required by the vessel, is provided
by the company;
-Shall ensure that all reports of deficiencies, non-compliance, incidents
and accidents are investigated and those responsible company submitted, to
determine appropriate action;
-Identification training for staff of the ship involved with the safety and
pollution prevention;

5.5.3. BOARD RESPONSIBILITIES

a). MASTER
Commander has full authority and responsibility for taking all necessary
actions for safety, pollution prevention and efficient operation of the ship. In some
cases this may mean deviations from procedures documented (according to IMO
Resolution A. 443 (XI)). Commander responsibilities are described in the job
description for the post of commander.
b). crew
Crew members must always comply with the rules and operating
procedures for safety and pollution prevention and to take all necessary
precautions necessary to protect, protect colleagues, ship, cargo and
environment. The specific requirements of each position are defined in the
documentation "Safety Management System Manual". For all seafarers on board
responsibilities are described in job descriptions that each employee receives
from employment, a signed copy Situated in the case of each employee, in case
the crew.

CHAPTER 6
DUTIES OF OFFICERS MARITIME MECHANICAL
BOARD
6.1. CHIEF ENGINEER
a). attribute the safe operation of technical facilities on board, mechanical
propulsion of the vessel and protect the marine environment:
-To know well and all views are taken on board that ship: the construction,
subdivision and disposal tanks, equipping it with machinery, plant, machinery,
equipment and devices, operation, performance and operational limits their
possibilities of exploitation and their use in different situations, the behavior of
their different applications, etc..
-During the construction of the ship and the acceptance period of shipyard
ship builder, study staff, organize and direct the work of study and knowledge of
the entire staff of authority, technical means of service provision machines and
technical documentation, as applicable, the receiving ship, record and report the
relevant service of the company owner's comments on the status and operation
of technical means on board.
-Follow the technical, operational and technical means of equipment
maintenance service machines, to follow up these instructions subordinated to all
staff, to ask the owner for operation and maintenance instructions for the
technical means that there are no such instructions and staff prepare specific
instructions for each workstation in its service.
-The technical features of operating the machinery and equipment from, to
determine the optimal duration and the minimum period necessary to prepare for
march (maneuver) of the main propulsion machinery, proper hot or cold season
and the situation in which the ship and communicate to the master and deck
officers and engineers.
Take appropriate measures-training machines and equipment from the
march (maneuver) and technology operations and report the completion of these
operations commander.
-Before the ship in port, and before any entry into port, strait, channel,
etc.., Together with the second captain to Verf steering operation, the control of
navigation and steering compartment, and perform several maneuvers to change
the direction of march of the propeller (forward and backward) to immediately
report to the master in case of abnormal or finding of fault.
-Monthly, along with captain mate, organize and carry out staff training on
the steering axle of the steering gear compartment, the putative emergency
situations.
-Periodically check to make technical revisions to the state of operation
and maintenance of technical equipment of service cars means to intervene
promptly to remedy the damage produced in their operation, to determine causes

of failure and take appropriate measures to prevent future occurrence of similar

events.
- Report to the Commander on all major defects and anomalies detected
in the operation of machines and installations, which may affect safe navigation,
to inform him of the possibility of remedial action by public board and to propose
appropriate measures to resolve, in situations particularly serious, to report
events and the owner produced, for work and compensation can not be executed
by public board and to be performed in foreign ports, to submit a written master
in showing the nature and extent of work involved, enforcement possibilities and
consequences that would be their failure.
-Before the planned repairs, together with the relevant service
representative of the company owners to determine the list of necessary repairs
and program execution.
-To report the master and owner whenever non-compliant state technical
means provided in the rules for classifying naval vessel register.
-If the need to perform some work on cars and equipment from which by
their nature require stopping the operation of the main car drive or make it
impossible to maneuver the ship, inform and obtain approval of the master and,
where appropriate, and port authority, before carrying out works.
-To be at his post in the central control of the machinery and to effectively
supervise operations and orders made mechanical watch officer (guard) or, if
necessary, to take effective responsibility for operating the maneuvers and
performance cars main drive in any of the following situations:
-During the execution of maneuvers with the main propulsion of the vessel
at anchorage and departure from the anchor input and output port, care, channel,
pond, sluice, dock, etc.., Landing and departure from berth, berth changes,
binding and departure from buoys, lifting and lowering of the dock (hold),
-When passing through areas where geographic, hydrometeorological or
shipping may require frequent maneuvers, frequent changes of regime march or
overstressing of the ship's main propulsion machinery,
-During emergency operation under the ship's main propulsion machinery,
-Actions during the battle for the vitality of the ship and fire on board,
-When requested by the engineer officer on watch,
-When they have such by the master.
-In the absence of the chief engineer on board the second, to be present
on board when:
-The main propulsion, auxiliary engines and compressed air bottles made
for repairs,
-The ship-loading operation is performed, landing and fuel transfer.
When the ship is at anchor in the stationary agreed with the second
captain, must:
-To have engineers on watch (guard) the execution of maneuvers liquids
in tanks.
-To monitor and control the execution of these maneuvers.
-To control how to conduct ballasting-deballasting operations and track car
diary entry of all data on these operations.

-Establish fuel tanks and consumption is made to inform the commander

about it transfers fuel they intend to do.
Follow-out entry in the log of oil (,, Oil Record Book "), the engineer officer
on duty (duty) of all transactions.
-To train the staff car rules to prevent marine pollution and to monitor
compliance with these rules.
-To have training facilities and materials inventory of machinery and
equipment to provide service inspection ship classification register.
-To review periodically how the safety measures and technical means to
ship on board.
-To check and sign daily log car, check with engineers on duty (duty) to
score accurately and systematically log machine operating parameters of the
aggregates and installations in operation, and technical register record
maintenance , revisions and repairs to score any work done, oil change,
replacement parts, repair, repair, chemical treatment of water circuits, etc..
-At the end of the voyage, to prepare and submit travel company owners
report stating the condition and operation of technical means, any damage their
products, maintenance and repair performed by public board, or other person
and the situation of parts parts and materials consumed and the remaining
materials, spare parts and tools necessary for the next voyage, etc..
About the organization and management staff to work in the car and car
service must:
-To organize, lead, mentor and monitor staff for its work.
-To know the professional qualities, moral and, where possible, personal
problems of staff car service.
-To organize and direct work of education and training of service
personnel on board the cars, as well as students and boarding students during
practice, to check the performance by the chief engineer of the second labor
protection training at work and instruction of fire fighting, the subordinate staff.
-To organize day care services, a watch and ride service for staff cars,
marching and stationary, in accordance with the commander, to prepare
distribution tables in service guard subordinates, to display and communicate
each person's entry into service.
-Before leaving to travel, to prepare work plan for maintenance and
revision of technical means in service machines and equipment for daily activities
program staff car service, submit to the chief engineer and master instructor for
approval and follow daily execution .
-In exceptional cases, order or approval under the master agreement with
the captain and second, to establish nominal service people in cars to participate
in work temporarily on deck bridge that people in service to temporarily
participate in the work in section machines and the tasks these people, in such
cases, second chief engineer to ensure that specific instruction to perform labor
protection service personnel deck to participate in an engineering works and
supervise people and that work.
-To keep records of hours worked by staff during normal machine work on
board and teach second captain position for centralization.

-To prepare staff car (mechanics, electricians and refrigeration)

Watchkeeping for execution in the engine department.
-To monitor compliance of subordinate staff of individual and collective
hygiene rules, order, discipline and rules of behavior on board.
-To take measures and to monitor compliance by the staff car rules of
labor protection.
-Periodically, whilst the ship and the day before the ship leaves the
voyage, to check and report the master machine service issues relating to:
-Receipt of materials, spare parts, fuels, lubricants and documents
necessary for the voyage in good condition
-Technical-operational status of the technical means in service machines
equipment and the results of corrective action,
-State of the fire-fighting facilities of car service equipment,
-Certified crew manning properly.
-To maintain order and discipline on board, to propose master reward or,
where appropriate, staff car sanctioning.
-To participate in meetings of the board.
-To work on their own initiative with other heads of service on board ship
for effective problem solving, to help ship officers in carrying out the service and
to provide technical assistance, the situation properly.
-Together with other heads of service, to accompany the master on board
controls the order and cleanliness inside and outside the vessel, together with
other heads of service on board before departure and arrival in port to control the
entire ship to ensure that the board are hidden contraband objects or materials
and any foreign person crew and passengers.
-In case the board of works or repairs, to establish the responsibilities of
each person in the car service, or repair work on the supervision and control
quality of work or repairs performed.
In relation to maintaining the vitality of the chief engineer of the vessel must:
-To study the time, together with the master and second captain on the
ship's technical documentation, typical cases of possible serious damage, related
to loss of buoyancy and stability and to develop appropriate measures for action
in such situations.
-To know the means and materials of existing vitality ship equipment,
location, rules and regulations for marking, use, storage and maintenance, and to
take measures to preserve and maintain the condition and their judicious use.
-To organize staff car and prepare documents for the roles of crew and
staff training to drive a car to defend and maintain the vitality of the ship,
preventing and extinguishing fires in the engine room, before starting each trip,
according to update roles changes in manning.
-Together with captain second, to prepare table watertight doors on the
ship.
-To participate in the standing committee of the vitality of the ship.
-To monitor the implementation of strict rules to prevent the fire on board.
-Based on orders commander to lead directly to vitality fight and fire in the
engine room and related spaces.

-After lifting the ship dock (hold), together with the commander, captain
and second site representative, to examine in detail the state of the hull, rudders,
propellers, chilelor roll, openings in the hull, and report its findings in a report .
-Before leaving the ship in water from dock (hold), to monitor seal all
openings which have been practiced in the hull and bottom plugs.
-To closely monitor all work performed at the opera alive and practicing
openings in the hull.
Atributions regarding goods service recorded on the administration of the
machine are:
-Depending on the planned duration of the voyage and provisions
approved norms, to calculate quantities of fuels and lubricants, spare parts,
consumables and inventory necessary for the voyage in good condition.
-Depending on the planned duration of the voyage and provisions
approved scale, to calculate the quantities required to monitor receipt of antidote
and antidote rights by staff cars.
-To compile the orders for supply of car service, to present the
commander for approval and to submit timely business owners.
-To take appropriate measures timely receipt, preservation and rational
use of materials inventory and other types of materials.
-To participate in the reception committee.
-To assign subordinates material inventory.
-To perform a periodic review of the situation of staff receiving goods in
cars and how to record keeping and management and draw their material liability
provisions.
-To assist the delivery and receipt of materials inventory service between
those cars and take appropriate legal action in the event of shortages.
-To keep daily records of stocks and consumption of fuel and lubricants,
including oil burned, and periodically report to the owner and master of the
situation.
-To end balances, monthly, annual consumables and materials service
record inventory of cars and balances to deal with the relevant service records of
the company owners.
-To maintain and, on arrival in the country, to teach the relevant service of
the owner, for refurbishment, all old and worn materials remaining after making
repairs.
b). job responsibilities:
-Organization and management of service personnel to ensure vessel
propulsion machinery, manufacturing and utilities activities necessary ship and
crew.
-Organization of the day, watch and ride service for staff cars parked
under way, in accordance with the commander.
-Organizing the roles, roles and preparing paperwork for staff to protect
and maintaining vitality car ship, preventing and extinguishing fires in the engine
room and related spaces.

-Organization and work of educating and training personnel board

machines, as well as students and boarding students during practice, conducting
labor protection training and fire fighting staff's.
-Maintain the cleanliness, order and discipline in the service car.
Mechanical propulsion of the vessel and safe execution of maneuvers with
the main propulsion, ship safety measures and technical means on board.
-Prevention of Marine Pollution by own ship.
-Providing electricity on board and energy balance.
-Preparation of the machinery and the march (or maneuver) and
technological operations.
-Carrying on ballasting and deballasting orders form the commander.
-Technical condition, safe operation and maintenance of machinery, plant,
machinery, equipment, appliances and tools that is equipped service cars,
including means of fighting and fire-fighting ship's vitality; compliance technical
operating instructions and restrictions on operation machines and equipment
required on board the ship classification register.
-Periodic technical inspection and remedy the failures of the board means
the facilities that is equipped service vehicles.
-Organization of supervision and receiving works and repairs carried out
by means of technical workshops to car service equipment.
Service supply machine-inventory materials and supplies, management
and distribution organization on management of the objects and materials service
record machines and their control of the management.
-Supply ships with fuel and lubricants and keeping daily evidentei stocks
and their consumption.
-Organization and with other heads of service on board, regular inventory.
-The accuracy of data entered in the log cars.
-Does the receipt and storage, on their honor, the following documents on
technical means on board:
Plans and technical documentation, machines, systems, machinery,
equipment and apparatus
of the endowment service machines,
-Warranty service of technical means of equipping cars
-Register-books of naval boiler, compressed air cylinders, cylinders with
CO2 installations.
-Other documents register
-Register record-technical maintenance, technical inspections and repair
and overhaul, spare parts replaced by technical means in service machines
equipment,
-Documentation and fire prevention,
-Table doors and other openings sealed
-Log record of oil ("Oil Record Book"),
-Log machines,
-Register the car service materials inventory,
-Register machine consumables of service,

-Acts on fuel and lubricants, supply requests, invoices, analysis reports,

statistical summaries and records of consumption etc.
-Other documents and papers as ordered by the commander and owner.
-Does the receipt and storage, on their honor, the following documents on
the crew:
-Instructions for conducting trainings for labor safety and fire fighting,
-Individual training records for safety and fire prevention and the
subordinates,
-File machine crew school,
-Tables of organization-day services, a watch and ride service for staff
cars,
-Work-plans of the service cars
-Minutes of handing over the function of chief engineer,
-Minutes of handing over of duties by subordinates,
-Other documents and papers as ordered by the commander and owner.
The following aggregate manager, installation, spare parts and materials:
-Machinery, equipment and service equipment of machines,
-Tools and measuring instruments and control equipment of service cars
-Materials and supplies inventory, spare parts and machine tools in
service provision,
-Materials of vitality and fire fighting equipment service of cars,
-Working equipment and personnel protection for car service,
-Fuels, lubricants, oil burning,
-Machinery, and electrical and electronic parts and devices that measure
and control electrical and electronic equipment.
c). responsibilities for safety management system
-Identify, develop and control person designated under the coordination of
procedures, instructions, plans and other documents of the company in
accordance with the requirements of procedure documentation system
-Identify training needs of all employees in their department,
-Periodic inspections and tests machinery, equipment and associated
tools, keeping adequate records,
-Assurance and timely delivery of all reports related to activities and
equipment subordinate to him in accordance with existing instructions,
-Inspection and periodic testing of the following, as planned, according to
specified control records, where applicable:
-Safety equipment on board
-Condition of the engine room equipment,
-Spare parts and maintenance materials,
-Use diesel and lubricants,
-Maintenance, reports,
-Analyzing samples of diesel and lubricants,
-Ballast tanks,
-Equipment and electrical installations.
-Machinery and reporting to their commander.

-Coordination and checking electrical and mechanical repair work of the

ship.
-Preparation of its ships for inspection by inspectors of classification
societies and maritime administrations.
-Implementation of corrective actions set for nonconfomitile identified
from their department.
-Under the supervision of the master, the proper preparation of forms and
reports related to the activities of their departments.
-Preparation of lists of works that are proposed to be made during
docking, tracking and control work on-board, advising the company on the
progress of work done.
-Participation and inspection measurements of bunkering barge. He is
responsible for the quantity and quality bunker. He must take samples of bunker
received, both during pumping and at the end of the bunkering operation.
d). general responsibilities of the chief engineer:
-Responsible for the timely and properly the duties they have.
-Reply of knowledge and correct application of the provisions, policies and
procedures relating to him, the safety management system of the society.
-Respect the rules of labor protection and other legal rules in force.
-Reply administrative, material, disciplinary and criminal - if, for damages
caused by failure of its duties or failure to comply with the tasks set by internal
regulations and / or law, or because of confidentiality rules, including damage
caused company for failure to its duties.
-Responsible for the integrity of fixed assets and inventory items available
in house, belonging to the company.
e). knowledge and experience required for the position of chief engineer:
-Graduate of a technical university in the field.
-Fluent in English language.
-Experience the types of ships and equipment (preferably those in
management company).
-Organizing skills.

6.2. MECHANIC MARINE OFFICER

a). attributions marine engineer officer are:
-To organize, lead, mentor and monitor staff for its work.
-To know well the duties of chief engineer and service all major issues
related to ship operation and facilities to be able to replace in some cases the
chief engineer.
-To know well and all views are taken on board that ship, the construction,
subdivision and disposal tanks, equipping it with machinery, plant, machinery,
equipment and devices, operation, performance and operational limits their
possibilities of exploitation and their use in different situations, the behavior of
their different applications, etc..
-Follow the technical operation and maintenance of machines and
equipment they work with.

-As directed by the chief engineer, to lead staff training activities auxiliary
machinery, as has, and to report to the chief engineer on completion of these
activities.
-To conduct chemical water treatment for cooling systems and auxiliary
machinery to keep track of these operations.
-To perform balancing, maintenance and technical inspection facility that
meets regularly.
-Periodically, the work plan set to make technical revisions to check the
status of operation and maintenance of machines and equipment that is over, the
chief engineer to immediately report any defect or fault found and produced any
particular situation, subordinated to train staff on how the maintenance and
operation of such technical means.
-To organize and conduct current work performed by public facilities board
responsible to supervise and control the manner of execution and quality of
repairs made to the technical means on board.
-Under the guidance of chief engineer, an engineering lead in carrying out
daily activities schedule.
-To watch and control tasks of service provided in the work prepared by
the chief engineer, chief engineer to report progress on the tasks, on tasks that
were not executed and the reasons for which were made to them propose, where
appropriate, development of alternative activities provided in the work and to
keep daily records of hours and work done by his subordinate staff.
-To execute service engineer officer on watch in the engine department as
head of watch it, that the engineer officer on duty, if such has the chief engineer.
-To be present at his post in the central control of main propulsion and
effectively oversee the operations performed or, if such has the chief engineer to
take effective responsibility for the operation and execution facilities with the
main propulsion maneuvers in anchoring and departure time at anchor, entry and
exit port, care, channel, pond, sluice, dock, landing and departure from berth,
berth changes, binding and departure from buoys, lifting and lowering of the ship
dock (hold).
-In the absence of the chief engineer on board, to be present at the board
when:
-The main propulsion, auxiliary engines and compressed air bottles
carried
repairs,
-The ship-loading operation is performed, landing or transfer fuel
-Ship is stationary at anchor
-To help or to replace temporary chief engineer when required.
-To provide technical assistance to subordinate staff mechanical and other
service personnel on board, whenever it is necessary for the proper performance
of duties.
-Prepare technical and material that is first and submit them to inspection
ship classification register.
-To maintain and reasonably employ materials inventory and other
categories of material which has the receipt.

-To establish the list of materials and parts necessary technical means it is
over, to compile lists received from other people and present them subordinate to
the chief engineer.
-To establish the list of necessary repairs to engines and other auxiliary
facilities that is over, centralize repair lists received from his staff and submit
them to the chief engineer.
-To organize, manage and control all the cleaning in the engine room and
related spaces.
b). general responsibilities at work are:
-Technical condition, safe operation and maintenance of machinery, plant,
machinery, equipment, appliances and tools you have the receipt.
-Revision to address technical and technical facilities on board means that
you have the receipt.
-Chemical treatment of water-cooling systems of auxiliary machinery.
-Organization and management activities compartment cleaning machines
and ancillary areas.
-Informing the chief engineer on materials and supplies inventory, parts,
etc.. necessary to carry voyage good for aggregates responsible.
-Keeping his cabin inventory objects and the other one horizon inventory
that has the receipt.
-It handles the inventory of the following machines facilities, spare parts
and materials:
-Fuel preparation system,
-Oil separators,
-Pumps and related spare parts facilities responding,
-Tool-kits, devices, instrumentation and control, appropriate equipment
responsible,
-Other machinery, plant and equipment assigned to it by chief engineer.
c). responsibilities for safety management system:
-To answer all the questions auditors and submit all documents required
or relevant.
-To report any non-compliance directly head, dangerous situation or
accident that a witness or involved.
-To get involved in the execution of its duties.
d). general responsibilities
-Responsible for the timely and properly the duties they have.
-Reply of knowledge and correct application of the provisions, policies and
procedures relating to him, the safety management system of the society.
-Respect the rules of labor protection and other legal rules in force.
-Reply administrative, material, disciplinary and criminal - if, for damages
caused by failure of its duties or failure to comply with the tasks set by internal
regulations and / or law, or because of confidentiality rules, including damage
caused company for failure to its duties.
-Responsible for the integrity of fixed assets and inventory items available
in house, belonging to the company.
e). knowledge and experience necessary:

-Graduate of a specialized technical faculties,

-Knowledge of English,
-Working knowledge of computer
-Experience the types of ships and equipment (preferably those in
management company),
-Skills of teamwork and to observe discipline on board.

CHAPTER 7
MANAGER, LEADER AND LEADERSHIP
IN SHIPPING
7.1. INTRODUCTION
From companies to dry them by results, quality of management depends
heavily on the managers who run these companies. Manager is the person who
exercises management functions according to the objectives, tasks, powers and
responsibilities specific to the task. The shipping situation is different from the
shore due to the nature of this area, the fact that ships are managed differently
from companies or establishments of productive land. The dangers are different
from those that occur in the dry work. For companies from land use different
kinds of classifications for the main traits of managers. Thus it is considered that
the main features are characteristic of a manager:
-Double professionalization, which means that besides the necessary
professional knowledge base, are required and qualities, skills, knowledge
management.
-Creative character of work performed, as a manager faces in
approximately 80% of cases, with new situations.
Managers can be classified under the following criteria.
a). After hierarchical level can be:
-Lower-managers:
-Foremen,
-Supervisors,
-Middle-managers:
-Chief of Section,
-Chief of compartments,
-Higher-level managers:
-Director,
-Deputy Directors.
b). After sphere coordinated activities:
-Functional managers:
-Service chief production
-Service chief supply, etc..
-General managers:

-Director of production,
-Economic director.
The profession of manager is characterized by the roles that a manager
must fulfill and these are:
-Role in interpersonal:
-Representation,
-Leader,
-Bonding agent.
-Role in information:
-Active observer (monitor),
-Disseminator of information,
-Word-bearer.
-Role in the decision:
-Entrepreneur,
-Handler of failure,
-Distributor of resources,
-Negotiator.
Managers regardless of hierarchical level which lies, takes care of
budgeting, organizing, training and coordination, but the time allocated for each
function differs from one hierarchical level to another and from one organization
to another. In this respect it is considered that:
-Higher-level managers to affect a longer time for the forecast, compared
with the average and lower
-Managers of medium and lower level will affect more time to organize, to
the higher level.
This time difference determines the quality differentiation must have
managers who are on different hierarchical levels, they are considered as
follows:
-Technical quality, which is the ability to use procedures, techniques or
specific knowledge industry, specialty,.
-Human qualities, which is the ability to work with people to understand, to
be able to motivate them to participate in achieving organizational objectives.
-Quality conceptual, which is the ability to coordinate and integrate all
interests and activities within the organization.
This also applies of course to shipping companies, but there are other
aspects that distinguish much of the shipping companies' management of
companies in the industrial production or provision of terrestrial services.
Managers of the shipping executives face a number of specific situations that are
sometimes hard to imagine that can happen to a firm from dry. Even if the
shipping service is technologically less complicated than conventional industrial
production or services, however, many technical issues affecting the
management of shipping companies. In the shipping company is noted that the
processes of management and execution processes are complementary, both
contributing to achieving business goals, but the largest share is held by
management processes. In a maritime shipping company, management team is

divided into the following levels of management, which form typical managerial
pyramid as follows:
1). Level I "Top Management", in which the senior managers in this
position is:
-Director General, responsible for overall management of the company,
perform the following tasks:
-Set action strategies of the company,
-Projected overall objectives of the company: the number of contracts of
carriage, the rate of
growth, profit, etc..
-Represents the company in dealing with the environment.
-Deputy-Director General, according to the current shipping companies in
Romania was abolished, but many other companies it is considered very
important. Usually the deputy general manager is responsible for operating
problems of ships.
2). Level II "Middle Management", which include middle-level managers. A
shipping company they are:
-Executive directors:
-Executive (operating)
-The fleet (ship station)
-Technical
-Safety and pollution prevention,
-Logistics (supply)
-Marketing,
-Economic,
-And financial,
-HR
-Administrative, etc. ..
They respond to application of company policy section or department.
3). Level III "Lower Management" or lower based management that
includes:
-Heads of departments and dispatchers,
-Heads of offices,
-The person designated,
-Commanders of ships,
-Superintendents.
They subordinated: Heads of teams (organized shifts), heads the crew of
the ship. Team leaders have subordinated staff performs actions on which the
company planned objectives. In the shipping company managers authority is
hierarchical and functional type.
i). hierarchical authority is exerted directly on subordinates in
compartments, by the department head, executive director and general manager.
ii). functional authority are carried out by specialists of the company, but
with the help of counselors, in some areas (eg legal, accounting).
Hierarchical authority overrides the functional authority for that
responsibility rests with the head, so the shipping company status, as well as the

domestic and international legislation in force, but many times and customs of
the area. This assures that the principle driving unit. In the management structure
of a shipping company, hierarchical pyramid is flattened type with a small number
of hierarchical levels. This type of pyramid has the following advantages:
-Provides direct and fast communication,
-Allows managers near the place of execution,
-Information system works quickly, even directly from the official, the
Director General,
-Efficiency in decision making,
-Small number of managers reduced their salaries and expenses.
-Flattened pyramid disadvantages are the following:
-Excessive burdens on managers, considered one of the most serious
problems in maritime transport in Romania
-Limitation of scope of coverage of all issues,
-Plenty of work sessions, held daily, after which normal working hours.
-The shipping managers can be classified under the following criteria.
-When the hierarchy can be:
-Lower-managers:
-Ship-masters, chief mates and chief engineer,
-Superintendents.
-Middle-managers:
The person designated,
Chief of Section,
Chief of compartments,
Chief of department.
Higher-level managers:
Director,
Deputy Directors.
After field-coordinated activities:
-Functional managers:
-Chief technical service
-Service chief supply
-Chief personal service, etc..
-General managers:
Director of ship operations,
Director of charter
Director of marketing,
Director of logistics,
Economic director, etc..

7.2. LEADER AND LEADERSHIP

Leaders are those individuals considered charismatic, sympathetic, which
have great communication skills, skills necessary to understand others. It is
considered that the main qualities of a leader are:
-Knowledge of the group he leads and sector of activity: market,
competition, technology, personalities, "key" incentives that motivate people.

-Relations in society and industries.

-Reputation, that success in business.
-Skills and competence: capacity analysis, reasoning safe, sensitivity to
others, understanding human nature.
-Personal qualities: integrity, honesty.
-Strong motivation to be leader.
Also consider that there are 4 ways to express the greatness in thought and
action of a leader as follows:
-Vision, which is the feature that distinguishes the widest perspective,
which requires new thinking and ample.
-Realism, that is always subject before the facts, rejecting illusions.
-Ethics, expressed by others attention.
-Courage, to act, to expose yourself, to be persistent in action.
Leadership is defined as a process of guiding a group of non-coercive
means. This means to guide people in a direction corresponding to their longterm interests, that is to dispel the forces and resources not available to the
group, not to exploit the negative side of human. It is considered that there are
certain commonalities between effective leadership, the group found a lower
hierarchical level and senior management of a company by:
-Vision that takes into account the legitimate interests of all persons
involved,
-Strategy to materialize this vision by integrating forces in the environment
of the organization, the internal factors which will influence the objectives,
-Support resources to implement the strategy set for the firm,
-Implicatesnt highly motivated group of people that the positions they hold
in the company can support transforming vision into reality.
The literature is remarkable three types of approaches of leadership issues as:
-Through the characteristic traits of leaders,
-Behavior-in terms of leaders,
-Contextual approach.
Leaders must fulfill the following main types of functions:
-Problem solving (tasks),
-Social function (information and keeping the group).
A leader who meets both of these functions is a powerful leader, these
functions influence the style of leadership. Effective leadership is influenced by
the following variables:
-Personality leaders, past experiences and their perspectives,
Outlook and behavior, superiors, leaders generally seeking to model after
their superiors, and even power sharing rewards.
-Tasks required and the leader who must fulfill,
-Outlook and behavior-firm counterparts or beyond,
-Characteristics, perspectives and behavior of subordinates,
-Culture of the organization.
The nature of the activities on board the most important leader is usually
the master, but in some cases may be mate. Quality are critical to resolving
difficult situations that occur at sea or in port, crew cohesion and its uniform

action. Currently management processes have expanded so have INCP be

organized departments of logistics, marketing and information, this being based
on specific management principles, but new concepts have emerged about the
time management and chartering. In terms of managerial issues managers,
leader and leadership is very important.

The leadership of "top management" in the management process held at the

shipping companies their share is as follows:
-Management of naval operations (1): 35-40%.
-Logistics Management (2): 30-35%.
-Human Resource Management (3): 8-10%.
-Chartering Management (4): 5-6%.
Maintenance-Management (5): 3-4%.
-Financial Management (6): 2-3%.
-General Administration (7): 1-2%.
From company to company as share these values vary. These situations we
have observed studying managerial processes to six maritime shipping
companies in Romania, which had different ships and by calculating the number
of activities, using simple arithmetic average we obtained these results. In some
cases data were not entirely true, as some leaders did not want to be known in
all the activities of the company, but the final values obtained are close to reality.
An important variable is given the seasonal variations of activity, periods of
making repairs to ships. In conclusion it may be that the human factor in shipping
was in corporate management positions have essential role for maritime market
strength. Unhappy experience of Romanian shipping companies showed that
only reality acelela which were led by strong leaders were able to achieve
results.

CHAPTER 8
THE LOGISTICS MANAGEMENT SHIP
8.1. INTRODUCTION
Major maritime shipping companies and operators have established
portuarii logistics departments, which are present in the flowcharts of many
companies from Europe, UK and U.S., along with the departments of marketing,
production and finance. But despite the apparent growth of the importance of
logistics in organizational structure, many chief executives still perceive simple
logistics role, considering that this activity consists only in delivering the product
or service properly, the right place at the right time and at the lowest possible
cost. It is not surprising that executives have such limited perception on logistics.
Logistics is defined as the strategic management of purchasing, moving and
storing materials, semifinished and finished products along with information flows
corresponding to these processes, in-house and marketing channels in order to
satisfy orders with the lowest costs for companies, create value added and can
play a vital role in increasing company profits. Only by connecting all logistical
activities directly to the company's strategic plans, managers logisticians will be
able to work effectively in support of the shipping company's strategy to gain
competitive advantage.
A main problem in maritime transport logistics represents an added value,
which represents the amount of money the client is willing to pay for products or
services provided by the company. Value added is the difference between what
the customer pays and the cost borne by the company to provide product or
service.
Businesses trying to determine the costs of transport to provide products
and services must consider two basic management concepts such distribution:
How much value-added product as it moves within the distribution channel from
supplier to consumer?
-How much it costs to provide such value added at each level?
Steps taken by a product from raw material procurement till its purchase
by the consumer, also raises two main issues:
-Who offers the service,
-Which are powers of two parts.
Logisticians managers must identify the activities that create added value
and thus allowing differentiation of services provided by their company,
compared to those of competitors. Many companies are able to significantly
differentiate their services from those offered by competitors. With their
increasing complexity, it is easier to provide a service other than that of the
competition, but it is more difficult to do on the client to perceive this difference. If
the client will not see the difference, it will not exist and the market therefore will
not benefit as expected. Successful companies tend to differentiate into particular
elements of importance to their customers. Often abstract elements such as
reputation that and create a navigation company, the quality, benefits are only

seen by customers. Obviously there are many favorable opportunities for

logisticians to focus on those differences valued customers, enabling them to
obtain a competitive advantage.
Cost information was one of the few costs declined in recent years.
Revolution in information technology provides logistics can use transactionbased systems, and support those decisions as a source of competitive
differentiation and as a way to increase market share. For example, service
management using electronic data exchange, the company and suppliers 'key',
can bring substantial cost savings. So use electronic data exchange between
manufacturer and customer can provide savings for establishing inventories and
time of operations designed to strengthen the competitive position of the client,
shared reward of value added in distribution channel that allows an spirit of
partnership, eliminating significant costs to customers and market entry barriers
against competitors.
Because their distributors as brokers, can be powerful differentiation
factors and influence, maritime shipping companies must learn how to make the
network of brokers a trusted ally. Charterers who feel that being in a partnership
with their suppliers, can influence customers to choose a specific shipping
company for transport. In short, shippers can achieve service differentiation.
In some cases a company brand image is so strong, that carrier has no option
but to deliver what the client requires. But often the client will be influenced by
the quality of services in the past and the relationship with the charterer, in these
situations, carrier added value by promoting service transportation company.
Logistics departments have more frequent contact with charterers, than sales or
marketing departments. Due to their interaction with shippers and other
intermediaries, they have a unique opportunity to provide services valued by
brokers, thus tightening the relationship of partnership between the two sides.
Current activities should be considered because of their potential impact on
shippers and customers. Few logistical resources of shipping should be directed
to those activities appreciated by customers who bring added value, causing the
company competitive advantage. Managers logisticians must have an overview
of the strategic plans of their own company and to understand the role of logistics
in the success of these plans. Managers logisticians will cooperate with
marketing departments, commercial and financial to identify the types of activities
that add value to the services company.
Logistics will play a significant strategic competitive advantage by
companies in competitive conditions in the maritime market. To answer these
challenges, managers logisticians will have to develop new skills, to convince his
superiors about the importance of logistics and to ensure that level of services
that are appreciated by customers.

8.2. LOGISTIC SHIP

The maritime shipping company management must be taken into account
the following aspects, which are the questions and the department must respond
logistic:
1). Who replenishment decisions to ship:
-Amount of products,
-Frequency and timing,
2). Who takes care of the supply ship.
3). What range of products is carried by ships company?
4). Programming displacement port of loading, receiving and loading of
goods on board.
5). Carry the goods to destination, unloading the ship and preparing to
resume its transport cycle.
6). Proximity to ports where cargo is located, covering maritime market
potential with the company ships, etc..
7). Administration commands:
-Bills of lading,
-Bills,
-Bank statements, etc..
8). Credit control:
-Customer-seriousness;
-Credit-limits;
-Conditions of credit / financing;
-Collecting money and incentives.
9). Administration prices (freight):
-Price changes,
-Value discounts,
-The factors of time, etc..
10). Advertising, promotional and representing company.
11). Customer Relations:
-Representation,
-Administration guarantees,
12). Changes to services, pricing.
13). Service performance.
14). Support:
-The people,
-The material
-The ship.
15). Market information:
-Actions of competitors.
-Maritime-performance.
-Reports on their services and about their users.
-New opportunities for transportation.
16). What discounts / price increases to be applied? They are common to
this field? Service are appropriate? Should be done more?

17). How important is our customer service? How important are firm
clients?
Specifically for the ship are very important and should be pursued those
elements of the logistics pertaining to crew members who have responsibilities
for logistics as:
-Master.
-The head mechanic.
-Deck officers and marine-mechanic I.
-Crew-chief.
For they are important:
-Supply vessel, the quantity of products, frequency of supply.
-The supply port where it will be.
Who takes care of boats:
-Staff company
-Ship-agent.
-How will the orders given to the ship for its supply, the circulation
of bills, receipts, accompany notices, bank statements, etc..

CHAPTER 9
MANAGEMENT FEATURES IN MARITIME
TRANSPORT
9.1. INFLUENCES OF MAINTENANCE AND INSPECTIONS
TO SHIP SHIP
Inspection program is now a ship the "critical" fleet management, where
the main objective is to met requirements of the marketing plan with a cost
effective and appropriate service capacity solid. This requires attention mainly on
the validity of the ship and market correlation in relation to capacity. In simple
terms peak traffic period would be to meet with a full fleet to be operational.
Factors influencing the formulation of the inspection program include the
following:
-Requirements of the marketing plan that reflects:
-Traffic and port of call,
-Frequency service
-Variety of merchandise.
Basic-research requirements and tolerance levels that allow flexibility
research data.
Valid terminal-capacity and costs together with the strategic location of the
deposit in relation to the travel program.
-Extension to the inspection and maintenance work can be started while
the ship is in service or stationary periods.
-Age, classification and registration of the ship.
All cost-terminal diversity of the vessel are made and time of each call. In
particular it is necessary to rent additional tonnage to take wastes from the ship
for inspection.
Terms of payment of the deposit-ship. An increased number of deposits
allows a sharing of payment facilities, broken down over the year, the situation
subsides owner's cash flow.
-ISM Code requirements.
Everywhere best results are usually obtained through a well planned
inspection program during the 12 months of the year, which is fully integrated
marketing plan requirements. Facilities computer programs play an essential role
in the formulation and analysis system to monitors. Currently ships are placed on
dry dock for inspection at the load line ship at intervals greater than two years.
This was possible by adopting management techniques by practicing on board
and the division of labor inspection across a number of years. Using the most
appropriate paint, anti-fouling system for inspection and water movement had a
contribution to extend the period of visits to dry dock. Choice of deposit for
research work should be based on careful evaluation of competitive targets. The
three factors are fully considered primordial fixed on contractual costs, time of
call and labor standards seaman. However attention must be oriented towards:

-Storage capacity and suitability in particular,

-Their technical ability to take work
-Overall productivity,
Industrial relations record,
Previous experience of owner-ship store,
-Exchange rates,
-Effect of any variation in exchange rates on fixed contractual costs,
-Cost and duration of trips to / from terminal
-Crew costs over the period of research,
-Any national or international policy towards countries that take research
work of the ship and supplies insurance
-Terms of the arbitration if a dispute would arise,
-Credit validity and payment term.
Inspection of the ship's traditional way is to bring the terminal where the
part to be inspected are disassembled, cleaned, inspected and reassembled.
This method it is also time consuming and expensive, but is still largely practiced
for many reasons. However a number of alternative inspection methods exist
today and have been increasing as the classification society and are very popular
now. Details of these methods are described below:
a). Inspection voyage. Inspector is present during the voyage of the ship
and draw up the required inspections. Prepares specifications if required in
cooperation with the shipowners part to be repaired.
b). notation B.I.S. While ship repair is still needed for several reasons, the
interval between repairs has increased considerably. This extended period may
conflict with the "normal". However for minor changes to the body and arranging
facilities, and a notation BIS can be obtained ("built in the water for surveys" =
inspection in water), which allows a range of repair at 5 years.
c). inspection continues. Classification rules require that the body and car
inspections occur every four years. Alternative continuous systems occur even if
inspections are divided by a cycle of five years. For engine inspection rules for
proving that these parts are inspected certainly chief engineer. More vessels
maintains the motor in accordance with established maintenance program, this
system can replace the main engine continuous inspection, such inspection falls
on a yearly class.
d). planned maintenance system. It shall be a type approval and can used
as a basis for a special inspection arrangements for individual ships at the
request of the owner. Today most owners use advanced planning systems and
maintenance procedures to increase the demand for cost effective operation. To
avoid opening is not required equipment and to avoid duplication of work, many
companies have introduced a classification alternative inspection arrangements
and equipment. The arrangement is based on the planned maintenance system
owner scalding ready "on board". This research program involves the following:
-Classified company that approved the maintenance of the owner.
-Initial inspection by the inspector on board the company.
-Inspection continuous engine which is in operation.
-Chief Engineer to be approved by classification society.

Annual inspections are made by the chief engineer accepted as class

inspections. However annual audit inspection must be made together with AGS
(Inspection Annual General Meeting). Audit inspection is done to check if
arrangements are in accordance with agreed procedures. The annual audit
inspection report to the inspector points required by the shipowner. Inspections
were divided over the year and several visits to the board were required by a
supervisor. A number of companies have now developed harmonizing
classification surveys as the relevant inspections can be harmonized or
synchronized with the Maritime Authority's requirements in each country. Each
inspection must be made with a tolerance for the connection and there are three
categories detailed below:
-Annual inspections with a connection for three months before and after
this date.
Two and two half-year of inspection to be made 6 months before and after the
date fixed.
-Special inspection in four years with a one year extension.
To ensure total benefit from the harmonization of inspections of the ship
owner has the following options:
-Inspection of the voyage unfolds, and the inspector takes into account the
required inspections during the voyage of the ship. If requested and in
cooperation with the ship owner, the inspector prepares specifications of parts to
be repaired.
-Annually, inspection equipment arrangement is based on a planned
maintenance system and approved.
-Construction for inspecting ships at berth, obtained by arranging minor
changes and car body, it increases the range of ship repair in five years.

9.3.
PLANNING,
MANAGEMENT

ORGANIZATION

AND

FLEET

Operational fleet planning is very important today in ship management. Its

role is to use ships or fleet so as to produce optimum results, particularly with
reference to market with a level of profitability. Is a strong area contained in the
budget and is usually scheduled over two years, but sometimes over 5 years. A
number of factors significantly influence decision making in operational planning
of the fleet as follows:
-Large ships tend to be more economical, but are generally constrained by
existing hard with deep water berths for ships of large tonnage tankers type.
-Small Vessels greater operational flexibility. Not only have
comprehensive access to port, but can more easily market to accept a vessel
less than a larger, particularly at trade depreciation.
-Planning has to go make the best use of existing fleet, noting in particular
that all costs are created, even if the ship is working or not.
-Management must decide if it is planning fleet needs for peak demands,
medium or low.
-Management should evaluate if it is planning to increase annual demand.
Method to consider the need for increased transport capacity must be decided,

because it can involve high-capacity ships, rental, new tonnage and quick
programming.
The data required for fleet planning will vary depending on the situation,
company or market, but predictions of income and cost factors will be dominant
in the evaluation and formulation of fleet plan. These are details of the
information required as follows:
1). Forecast traffic demand is given annually by the marketing department.
2). Prospectus search of new contracts that are awarded for trade such as
perishable freight flow. Data provided by the marketing department may contain
results of marketing research.
3). Details of peak seasonal demand and weak months together with an
analysis of the goods contained, storage and income derived factors. They will
determine the precise level of demand and income at different times of the year
and facilitate how best to provide more economic capacity requested, on the mix
of goods and net income.
4). Acceptance specifications vessel on berth and port together with any
fluctuations or other constraints.
5). Port and the costs of their application.
6). Time of each trade or travel route. This is usually provided by the
superintendent of a sea port or berth to another berth or another.
7). Individual capacity of the ship and its validity over the 12 months
having regard to the inspection request.
8). Facilities of transboradare on board and to what extent the port can be
used to speed up the time of return and reduce port costs.
9). Cost voyage from a port or berth to another berth or another, together
with other relevant costs including travel in port, fuel costs, which will vary
depending on the port, the ballast voyage cost, optimum speed of the ship.
10). Options and alternatives such as the rental costs over the peak
period.
11). Cost the crew.
Fleet planning is closely related to:
-Budgets,
-Economic forecasts,
-Investment options,
-Market trends,
-Policy.
This is aided by the use of computers, everywhere requires a good
knowledge of market conditions and trends related to the ship on a profitable
use. Along with fleet planning, corporate business plan is an important task of
fleet management. This involves the following criteria, but will be influenced in
particular the classification of the ship, the markets they operate ships and goods
carried as follows:
-The first objective is the directorial board of the final business plan for the
fleet manager will respond, working always within the framework of the maritime
industry, always ensuring safety of the ship.

-Plan Steering Committee should reflect the objectives of the company.

This should lead to market and budget and has all participants consent.
Fleet capacity, resources must be matched market forecasts and should be
reflected in the budget gets its great sailing program. Maximum resources must
be available during peak.
-Plan should be directed at reducing costs and tied to income derived from
a mixture of freight transported on each trip to ensure that budget profit to be
achieved.
-The navigation requires special attention on:
-Port costs,
-Fuel-purchase facilities,
-Terminal location,
-Port technology.
-Resources navigation,
-Compatible with cost-optimal speed,
-Competition and income-generation and increased throughput
-Cost of transhipment cargo
-Port infrastructure,
-Time return
-And validity of food-storage.
-Fuel, ship repair and ship inspection must be considered as strategic
locations and the terminal port. To be cost effective they must involve the
payment stage of inspection programs and to cause minimum loss program
navigation.
-The management crew as the ship inspection program is a critical area of
fleet management costs.
-Port costs, disbursements and insurance are all areas that require
constant review to ensure that ship owners get a favorable deal.

CHAPTER 10
MARKETING IN SHIPPING
10.1. MARKETING CONCEPT
Marketing is a way of thinking and action on the market. It provides a
systemic action workflow linking production and consumption, being a science
field theory of scientific management of economic and social phenomena and
processes. Marketing term is Anglo-Saxon origin and is the present participle of
the verb "to market" which means "to buy" and "sell", "to conduct market
transactions. The origin of this term is the early twentieth century in the United
States. In 1902 the Bulletin of the University of Michigan, the introduction of a
graduate course on the distribution of the phrase "different ways of marketing the
goods", then the term has expanded and internationalized.
Marketing has become synonymous with the methods used by businesses
to attract customers and persuade them to buy products and / or services.
Marketing Department of a firm is regarded as responsible for launching new
products, the emergence of favorable press articles, market studies and
arguments provide support for those dealing with sales, the marketing people are
expected working with advertising agencies, analyze and resolve customer
complaints, establish criteria and guidance in choosing new products and
campaigns to promote their organization, etc.. This approach reveals that the
main function of marketing would be presenting the company and its products to
potential customers.
Marketing is an extension and a very large complex and has many
meanings. Elizabeth Hill and Terry O'Sullivan believes that marketing "is a
business philosophy that sees customer satisfaction the key to understanding
business and recommended management practices that help to identify and
address customer requirements."

10.2. DEFINITION OF MARKETING

Depending on the approach to marketing, he has been given many
definitions. American Professor Victor Buell in his "Marketing management: a
strategic planning approach" published in 1984 noted that "there are many
definitions of marketing how many books are on this subject." Definitions fall into
two categories: those that focus on the philosophical dimension that focuses on
more specific approach of marketing processes.
a). Marketing as business philosophy. A firm that adopts the concept of
marketing as a philosophy major client sees the driving force behind its activities,
considering that the business can survive only if he can satisfy his needs. In a
market economy buyers can choose what, when and where to buy or whether to
buy a product or not. So to be successful in attracting consumers, the starting
point for a firm is to identify what customers want and then try to meet these
requirements in more effectively than the competition. In the long run a company
must satisfy consumers and make money from it. The company's offer as better

sync with the requirements, preferences and desires of consumers, the more
they are willing to pay, generating profit for the company. Hence, marketing as
business philosophy can be best defined as "the ability to create and keep
profitable customers."
This creates the following relevant issues:
-Creating a business customer requires it to monitor the business to react
to changes occurring within the needs of potential consumers, so that they
become actual customers.
-Keeping customers refers to the ability of the company to minimize or
avoid threats to its portfolio of customers, either because of changes in their
needs or because of changes in competition among.
-Profitable customers of the company are those who earn revenue in
excess of its production costs. Firms should focus on profitable business activity
and not attracting customers at any price.
b). marketing as managerial. Most definitions of marketing is not about his
philosophy, but the management processes that are inherent in creating and
keeping profitable customers for the company. The most common definitions of
marketing are:
-Marketing is the management process responsible for identifying,
anticipating and satisfying customer needs in a profitable manner.
-Marketing is a social and managerial process by which individuals and
groups obtain what they need by creating and exchanging products and value
with others.
-Marketing is planning and executing the conception pricing, promotion
and distribution of ideas, goods and services to create exchanges that satisfy
individual and organization goals.
-Marketing is a whole system of economic activities related to scheduling,
pricing, promotion and distribution of products and services designed to satisfy
current and potential consumers.
Definitions of marketing aimed at both macroeconomic and
microeconomic level. Thus the macro view:
-F. Kelly, in his "Marketing: Strategy et fonctions" published in 1968,
consider marketing as a "social instrument through which products and material
culture of a society are transmitted to its members."
The micro view:
-In French literature shows that marketing is "all means at its disposal to
create, maintain and develop their markets," Jacques Lendrevie, in 1974,
-Marketing includes "permanent demand analysis, on the one hand and on
the other hand the establishment and operation of the means to satisfy it, in an
optimal profit", Denner, 1971.
Professor Nicolae Al. Pop believes that marketing is "a new economic
Optical, a practical, concrete company and its function". From this marketing is
considered as "a function of the company that acquires concrete substance,
distinct from other functions, research and development, production, trade,
finance and accounting personnel, only strong companies, the marketing optics
is found to all staff.

In view of Professor C. Florescu "is a modern marketing in business orientation,

reflected in a coherent set of practical activities, planned and organized by using
scientific methods and techniques". The definition includes three elements:
-Modern design,
-Practical activity,
-Methods and scientific techniques.
But taken together these three elements explains the marketing material
content as follows:
-Modern concept refers to a new optical economic organization and
performance of firms, which has as its starting point research consumer needs,
market, in order to satisfy the actual and potential consumers, the higher and
maximum efficiency . Completion activities are not limited to companies selling
products and services but also includes the behavior of their consumption, level
of satisfaction for which they were designed and produced. Optics marketing
company aims to market relations, indeed with all the factors and conditions that
make up the "environment" of firmeii. The focus on market and consumer is not
the manufacturer.
Practice-specific marketing activities can result in:
-Investigation of the market and consumption,
-Acceptance-testing products on the market,
-Promotional activities,
-Tracking consumer products, etc..
-Scientific methods and techniques aimed at collection, transmission,
processing and interpretation of information needed by marketing decisionmaking. In the view of marketing intuition, empiricism and routine gives way to
the processes and techniques are belong to scientific disciplines as mathematics,
statistics, sociology, psychology, etc., to be used in the scientific marketing
decisions subject to the managerial and in developing forecasts, programs,
strategies and marketing policies.
Optics and marketing orientation of any modern company requires:
-Responsiveness to: market demand, needs, requirements and desires of
consumers, their changes.
A high capacity to adapt to market changes, even to anticipate and
influence them.
-Creative spirit, inventiveness and concern for renewal and modernization.
-Consistent approach to activities that make up the full economic cycle of
goods and services.
-High efficiency, obtained as a result of the company's actual orientation
towards real needs of final consumption and production, the market demands.
Above definitions facilitate understanding of the role of marketing in both
profit organizations (economic), and in the non-profit, they consider the makers of
marketing as some agents that help to meet the needs of individuals and
organizations achieve their goals, their is to exchange, to obtain money from
consumers.

CHAPTER 11
MARKETING FUNCTIONS
11.1. MARKETING FUNCTIONS
Understanding the objects of marketing is very closely related to
knowledge of its functions. The first attempts to define the marketing functions
have assigned the status of activities subject to transfer goods and services from
producers to consumers (users). So Duncan Philips and identified three
categories of functions of marketing:
-Features the role of transfer of title to property: buying and selling.
-Functions involving physical distribution of products: handling, transport,
storage and storage.
-Features support the distribution process standardization, fractionation,
dosage, packaging, financing, insurance, risk taking, obtaining information.
Bates and Parkinson believes that marketing has four functions:
-Analysis and forecast, ie prospecting.
-Development and production design.
-Influencing demand by design, advertising, etc..
-Services: distribution, post-sale.
Kelley identifies two categories of functions:
-Functions macromarketingului including:
-Traditional functions, which includes purchase and sale operations
physical distribution,
-Support functions,
-Social functions.
-Functions of micromarketingului, including:
-Estimation of potential organization
-Planning and scheduling your marketing effort,
-Organization and management of marketing,
-Evaluation and adoption of the marketing effort.
Professor M.C. Demetrescu claims that the organization, marketing has
only two functions:
-Identification and attract demand
-Demand.
Such approaches the essence of marketing, depriving it of specificity, the
more they do not allow direct marketing shaping contribution to optimizing the
production and sale.
To remove inconsistencies mentioned Professor Constantin Florescu
mention the following general functions of marketing:
a). market investigation, consumer needs and / or use. It is considered as
a function premise and starting point of all marketing activities. Market research
is required to provide substantiation of all marketing decisions, be it design,
acceptance testing and launch of a product or service and its network of stores
opened and sales promotion in certain consumer segments or niches market.

Without an adequate basis of information on the market, gained through this

function, the marketing can not be effective. The literature studying the market is
known as marketing research.
b). Adapting the company continues to change. Refers to the market
requirements and operating environment, anticipating and even influencing, in
the sense that it wants such changes. Because it involves mobilizing human,
material and financial company to respond as effectively as products and / or its
service requirements demand made by the carriers, it is a function center.
Resilience measures the extent to which offer dynamic company with a request
on the market, in terms of quantity, structure and quality.
c). satisfaction of consumption needs or high use. This function includes:
-Production of what is needed for consumption,
-Optimal distribution of products and services,
-Establishment choice according to tastes, desires and preferences,
-Broadening range of products,
-Education (influence) customer tastes to create new necessities.
The more a company manages to better meet market demands and adapt
to changing them, so his chances to form an own customers, to improve its
position over its competitors and to increase the number business.
d). maximize economic efficiency (profit). Achieving this requires
optimization functions:
-Structures of production.
-All business processes:
-Production,
-Transport
-Storage
-Marketing.
All this constitutes the complete flow of production-consumption, in
keeping with company objectives and allocation of resources. In view to
implementing the marketing function must provide sufficient information, the
optimal criteria and other specific elements.
The second purpose of the marketing function which explains the dual aim
of every business activity, namely a social purpose and economic one.
Preferential treatment in either the firm may have negative consequences for
future firm order. In terms of priority to emphasize the third position, company
profitability will suffer, undermining the very purpose of existence the company.
If, however, would focus more on the fourth function, increasing profit, the
company would run out of time customers. And in both cases, the fate of the
company as bankruptcy.

11.2. INTERDISCIPLINARY MARKETING

Examining sources of marketing theory can be seen that it has borrowed
much from the business sector related disciplines, such as economics, branch
economy, the social and behavioral sciences as sociology, psychology,
anthropology, etc., from the methodological (statistics , mathematics,
econometrics, etc.) and these loans are reflected in the terms, concepts, data

and techniques. However since no generally accepted theory was outlined, there
have been many points of view on marketing, which argued the abundance of
definitions which were given. As with other core subjects and relationship
marketing with science in general, especially the economic one, have been
subject to extensive discussion and controversy among experts. Thus the
question very often "is marketing a science?" Received a wide range of
responses, of which most significant are: marketing is "applied science", "a new
science of selling", "not a science but a art "," not only a science but an art ", etc..
Currently has a marketing research tools and their specific terminology,
enjoying full use of computer applications in several areas:
-Distribution of goods (distritica)
-E-payments (Moneta)
-Marketing-information processing,
-Long distance transmission of information (telematics).
Following the progress of marketing practice in countries with developed
market economy, marketing theory has improved continuously. Such
improvements have been essential concepts of economic theory:
-Needs consumption or use,
-Market and its mechanisms,
-Supply and demand of goods, etc..
The contribution of marketing to enrich economic theory has resulted in
the transformation of intimate resorts highlight the needs of consumer demand
for goods, to measure statistical links between demand and its influence factors,
etc..
Interdisciplinary character allowed a successful marketing blend of
quantitative and qualitative study of phenomena and processes taking place in
the market, using methods and tools more appropriate. Nowadays marketing has
a very rich arsenal of methods, starting with the rigid scientific, which are
complemented by heuristics and ending with working tools of sociology,
psychology, social psychology.

CHAPTER 12
MARKETING IN THE MARITIME SHIPPING AND
PORT
12.1. INTRODUCTION
Marketing organization is the product design process, production, sales
and after-sales service activities, identify the needs of consumers, in order to
satisfy their superior. Moreover believes that marketing is introducing a new
economic vision scientists, restores "the link between production and
consumption, which is weakened by the deepening social division of labor", but
also need an understanding that "must occur that is required on market, effective
as higher ". It has become an economic activity, universal, complex, present in all
geographies and all world markets. In this context emerged as the International
Marketing, principles, methods and techniques Marketing are universal, being
applicable in a country or more. International Marketing includes the same
activities as the internal data but the differences are: how are achieved and the
scope thereof.
A widely accepted definition of International Marketing is that it represents
"the result of business activities that direct the flow of goods and services of a
firm to consumers or users in several countries". Following this definition can
understand the difference between domestic and international marketing is just
that International Marketing means conducting activities in several countries. But
the differences are given and different cultural influences and their impact on
marketing activities and processes. From here we make a distinction between
marketing processes as follows:
-International Marketing.
-External Marketing.
-Global Marketing.
a). Marketing International Marketing is the component of that taking place
beyond the borders of a state and is distinguished from the internal one by the
following aspects:
-Transcends national boundaries.
Supports a number of changes and restrictions relating to: economic, political,
legal, etc..
These restrictions affect the level of a state imposing specific marketing
expansion and diversification strategy and internal marketing plans, in other
conditions and situations abroad.
b). External marketing is a form of marketing that takes place within
different states and internal marketing differs by the following features:
-Competition is different.
-Use other channels of distribution and domestic.
-The promotion must be addressed separately from all other realities.

For these reasons addressing external marketing is much more difficult,

each state is in fact a marketing environment unlike any other. Hence the need
for and application of different strategies for each state, each region has its
distinct for different categories and segments of the population.
c). Global Marketing is the ability of firms to forecast, plan, organize,
coordinate and integrate marketing in different foreign environments. It starts
from the fact that each has a specific foreign market, which requires
differentiation of International Marketing. International marketing is distinguished
by its security features from both international trade and how international
business. It is considered that include the International Marketing International
Trade, but at the same time is included within the scope of International Affairs.
International trade includes all activities and operations of an economic,
commercial, technical and scientific investment made by a state with one or more
states. International business is the international affairs functional areas as
follows:
International industrial-production.
-International Financial Management.
-International Marketing.
Differences between International Trade and International Marketing are
given by the following aspects:
-Participants.
-Transfer products and services abroad.
-Motivation.
-Source of information.
Because shipping is primarily an international activity, to address
marketing Sea (Naval) and port means the start of the study overall world
economy as a whole, because shipping is a force main to transform global
economic reality.

12.2. WHAT IS MARKETING THE MARITIME AND PORT?

Marketing in the maritime shipping and port is a specific component of
international marketing, but at the same time belong and Commerce International
Maritime can not be separated from the Marketing component. Marine Marketing
represents a specialized area of International Marketing, which includes all its
elements tailored to the specific shipping. Maritime Marketing was considered a
long time as part of your management of navigation, ie it enters only the duties of
rulers who decided what is good or not firm, established prices for the transport
of goods (freight), paid various companies or publications ads. Marketing ports
can be considered as a component of internal marketing, but the excellent work
carried out in ports is not limited, it was directly influenced by marine transport
(sea and river) which are international. In conclusion and it is studied
international perspective.
In the past 15 years the situation changed and the shipping companies.
Thus were established departments, marketing departments and offices with
responsibilities, functions and responsibilities especially unusual that one can
speak of the emergence of "marketer"-s, ie well known specialists in Marketing.

This is cool to the major shipping companies, but also in terms of small and
medium enterprises operating in the port. Also the port administration
departments were established as a series of policies that promote the marketing,
to increase the efficiency of basic and auxiliary permanent adaptation to
environmental changes.

CHAPTER 13
MARINE INDUSTRIAL MARKETING
13.1. INTRODUCTION
To obtain the necessary information about the maritime market,
competition, manufacturers, the company must be prepared several studies on
Marketing:
-The service it provides, such as:
-Shipping
-River transport,
-Port operation.
-Price (freight).
-Types of goods can be transported.
-Promotion.
-Channels for distribution.
-Market as a whole or differentiated, etc..
For each element are necessary information about them many from
different sources, so that all can be checked.
a). service provided by the firm that is conducting maritime transport is
investigated, analyzed continuously to meet the following aspects, which can be
particularly important in the general policy of the company, they are:
Quality of service, which refers to:
-Safety of navigation,
-Protection of goods during transport
-Perform loading, stacking, arranging and download the most
good condition
-Protection of marine environment
-Professional competence, moral integrity, responsibility of members
crew involvement in solving the master and officers
ship issues, etc..
-Technical state of vessels, the degree of interoperability, the training
capacity
boarding it for various categories of goods.
The study in this respect should contain information in detail, updated
regularly, because activities are carried out very quickly, and within a few days
time, the ship is moving in different ports in different countries, and good
organization activity can be influenced in this case.
-Ensuring the ship with all its economic and financial implications.
-Ensuring goods by manufacturers or users.
-Compliance with contract terms that refer to:

-Running-time,
-Obligations,
-Responsibility, etc..
This information should be pursued not only by company managers, who
have plenty of obligations and charging them excessive working time, but also by
other departments of the company, so that the role of the marketing department
is essential.
b). price shipping service (freight) company makes money is what is most
important for owners, owners who wish to obtain the highest price, to ensure their
return on investment and profit expectations. At many companies maritime role
marketing department or office, if any, is reduced to the study of price, the price
development of different variants, depending on the type of contract, specific
terms, rebates, etc.. This situation is based on the fact that managers negotiate
prices directly with manufacturers, beneficiaries or brokers, without involving the
firm's marketing specialists, so this section is reduced role in the development of
options pricing tables. As is customary maritime practice quite often the price to
be accepted from brokers offer, producers or beneficiaries, etc.. The most
frequently encountered situation is to call the broker, offering a number of
advantages for companies as follows:
-No need to look for contracts (particularly for ships "tramp").
-Broker is one who deals with all aspects of links between producers,
users and owners or charterers.
It has the following obligations:
to inform the shipowners or charterers on market developments
-To submit all available data on goods and vessels,
-To do everything to hire commodities and vessels required conditions,
-To act in accordance with the authorization that is, the charterer or the
shipowner.
-Need to be actively involved in negotiations, to give advice and make
their recommendations on preparing tenders or contraofertelor,
-To work within a loyalty to the company which hired.
May accept or reject bids received being able to choose the most
favorable offers.
Disadvantages for companies consist of the following aspects:
-The company depends on the brokers, that can have some influence on
price.
-Can be offered those types of goods are not the best transport, which
have the lowest price and which offers opportunities for negotiation.
Can hide certain information or to submit false information.
c). types of goods can be transported can be divided into two main
categories:
-Raw.
-Manufactured products.
Their influence on the transport is given by the following aspects:
-The quantity,
-Physical,

-Quality,
-Diversity,
-Features handling and stacking,
-The degree of danger,
-Degree of perishability,
-Freight for each type of merchandise.
1). Amount of commodity:
-Number of ships used to transport routes, the line;
Regular and continuous-flow freight in both directions.
Irregular flows in the system using ships 'tramp', this having direct
consequences on freight and contract conditions.
2). Depending on physical condition, commodities can be classified as
follows:
-Dry,
-Liquids,
-Livestock (animals, birds, etc.).
Another classification divides goods after handling flow, in:
-Bulk:
-Solid,
-Liquids.
General Goods (staple), which may be as follows:
-Piece by piece and piece by piece,
-Packages,
-Boxes,
-Packages,
-Bundles,
-Barrels,
-Bonds, etc..
i)Dry goods are divided into:
-General goods:
-Packed,
-Loose.
-Dry bulk cargo.
-Saw.
-Perishable goods.
-Dangerous goods.
-Goods unpleasant.
-Special goods.
General cargo can be classified as:
-Iron and steel products:
-Bars,
-Slabs,
-Plates,
-Sheet steel
-Bar
-Wires,

-Tubes,
-Pipe.
-Wood products:
-Logs,
-Plank
-Strips,
-Beams,
-Cellulose, etc..
-Rolls of paper.
-Cars.
-Plastic products, etc..
Perishable goods are:
-Fresh fruits and vegetables,
-Dairy products,
-Eggs,
-Meat
-Over,
-Pharmaceuticals.
Commodities unpleasant:
-Chemicals
-Strong-smelling products, etc..
Special goods:
-Alcohol in bottles, cans,
-Garments and knitwear,
-Electrical and electronics, etc..
ii). liquid goods can be divided as follows:
-Crude and processed oil.
-Bitumen.
-Vegetable oils and fats.
-Wines.
-Juices, etc..

13.2. ASPECTS OF MARITIME INDUSTRIAL MARKETING

Among the most important problems that need to resolve maritime
marketer-he was and the related purchase new equipment, modern "state of the
art" or "second hand" for doatarea the ship and its facilities. This situation has
major financial implications on tax refund companies shipping, and operating the
ships, and therefore must be designed and carried out by competent persons
with specialist training or consulting firms to be used.
The category of equipment you should buy them specialstii shipping
company may include:
-Equipment and apparatus of all kinds, deck or car,
-Equipment, facilities handling goods on board,
-Scaffold board
-Trimming equipment and stacking of goods,
-Computers and specialized programs, etc..

For their acquisition should be evaluated the following aspects:

-Annual maintenance costs.
-The cost of certification, inspection and testing to ensure effective
functioning safely.
-Operating expenses, which must be determined accurately. This
should take account of regular maintenance programs.
-The cost of transportation of products purchased from the place of
sale, until the port or shipyard where the vessel.
-Assembly and installation costs.
Financing the procurement of equipment is a problem that must be taken
into account when they are popular and usually purchase such equipment must
be efctuat after they have requested bids from at least three different
companies, and if time allows we can organize auctions for achizionarea
equipment.
Hence the need to be aware of all information and data:
-Purchased equipment,
-Technical documentation,
-Annual inspection certificates,
-Other additional reports.
Before purchase complete evaluation must be conducted on:
-The equipment,
-Compatibility of equipment,
-Operating and maintenance costs,
-Availability of spare parts.
All these aspects show that in a decision must take into account all
factors, the effects acesora short, medium or long the company.

CHAPTER 14
PECULIARITIES OF MARINE MARKETING
14.1. INTRODUCTION
Maritime Marketing has some features that differentiate it from the
domestic and international. These features are specific chapters is as true, the
shipping, but they can be analyzed in terms of specific marketing problems.
Among these features, the most important are the following:
-Provide the shipping companies, with new ships.
And purchase of ships "used", upgrading and using them for transport.
-Disposal of ships and selling them for scrap.
-Accidental loss of ships.
These features became for some time, true strategic directions of the
owners take into account when deciding to build a ship, to buy one on which to
modernize and continue to use or to overturn a vessel. In situations disastrous
maritime disaster, owners must be prepared to cope with all problems. Those
who think they can not happen to be a disaster, take a high risk of bankruptcy,
not solve crew, not able to help the crew, if necessary, even when there a series
of obligations established by law. The aspects of marketing, these features are
important, so the company must be prepared a record of all problems:
-To be prepared an investment plan, the new ships equipped with modern,
medium or long term, 5-10 years.
-Be drawn up a schedule of current repairs, overhaul and modernization,
annual, 5 years or 10 years.
-To have a plan to dispose of vessels, depending on the type, degree of
wear of the ship or its equipment on board. Even if they are outdated, obsolete,
many owners prefer to keep them in service, repairs or upgrades after certain
minimum.

14.2. EQUIPMENT COMPANIES WITH SHIPS SHIPPING

Some specialists consider that the rate of renewal of a commercial
maritime fleet, depending on the dynamic maritime market demand. It is however
a lengthy process due to the following aspects:
-Ships have a period of mining, ranging between 15-20 years, this period
being reduced for vessels such as oil, where technical wear is very high.
-Characteristics of construction and operation of vessels, differentiated
according to their type, area navigation, class, etc..
The decision to build a new ship, must be taken depending on the
situation on demand forecasts, which show that in certain periods, maritime
market situation was dramatic, because of unpredictable factors. Deciziiilor

making, the management company, can be used as an indicator, the shipbuilding

industry, type and number of new ships built. This indicator can be used in the
work of prospecting and forecasting maritime market. Supply development, the
categories of ships, for periods of decades, is particularly significant in order to
understand aspects of the evolution of demand for new ships.

14.3. PURCHASE OF SHIPS "USED"

In certain situations, when the company is in development is increasing
the number of contracts, relationships with partners are strong, stable and longterm forecasts are favorable or expand activities occur when certain maritime
market opportunity or management company must adopt a decision to build a
new ship or buy a vessel in operation. Buying a ship to "second hand", is a
decision should be based on an analysis that should include several elements,
as follows:
-Ship-type, age, technical equipment, the degree of modernization.
-Its price, payment conditions, delivery, and where the situation is this.
-State technique, expenses necessary for it to be modernized, for safe
operation.
-Medium-term forecast, safe business.
-Marketing department should seek more bids, of the existing market, to
conduct a series of tests and then to present management's conclusions
obtained, from which to purchase the ship.

14.4. SALE AND DISPOSAL OF SHIPS IN OLD IRON

Scrapping a ship and selling it for scrap, is a decision must be taken by
the management company, according to the following factors:
-Age ship.
-Moral and physical wear.
-Increased maintenance and operating costs.
Lack of safety in operation.
a). Age ship is the main criterion, but there is a certain age at which to
consider a vessel must be removed from operation. There were situations where
ships had a period of mining, they have been repaired on time and maintained in
good condition, which made this period to grow. Minimum age reached on some
vessels such as oil or chemical tankers, between 10-12 years, due to physical
wear advanced them. These ships are the rule used on the line, without periods
of rest, the activities of these vessels are ongoing.
b). obsolescence is given by the fact that, due to scientific and technical
revolution, and international regulations, ship's equipment and equipment so
regularly, this should be changed. The emergence of specialized ships, such as
container ships, led to the removal of the operating situation of a large number of
cargo. Another aspect that contributes to growth this obsolescence, it is the fuel
of the ship, the miles traveled. Installation emergence of ships having a low fuel
consumption, has also contributed to decommissioning of vessels had a high
intake of cobustibil.

c). with age, aging vessels, equipment and facilities on board crashes ever
more often, requiring repair with high costs but low reliability, which fail to meet
operational needs and technical standards.
d). lack of safety in operation, is another factor driving the decision to
dispose of the ship. Stringent regulations, adopted internationally in the safety of
navigation, but certainly others that will follow, especially in terms of marine
pollution, will reduce operating time of vessels and lead to their disposal.
In some cases, the decision to dispose is influenced by other factors, the
transport demand changes or supply of tonnage. Selling ships for scrap
represents a decision, which follows naturally that the scrapping of the ship. In
some cases owners of ships operating out but decided not to upgrade or sell
them for scrap. This decision is sometimes hastened by the fact that the
company needed some funds, which can be obtained from selling the ship for
scrap. Ships are sold to specialized sites in their dismantling, recovering raw
material (iron, steel, copper, aluminum), which sells metallurgical processing
plants.

14.5. ACCIDENTAL SHIP

This situation has long been considered a problem "taboo" due to a
mentality, and lack of training in Maritime Management. It is true that nobody
wants to happen a catastrophe at sea or in port, but statistics present alarming
situation, the technical possibilities of the beginning of the century. Why should
this problem be addressed by specialists in Marketing, a maritime shipping
companies or managers must be in its attention? First, it is a matter of risk
management, as in any business, maritime, there is always risk, it must be taken
into account, should be prevented through a series of organizational measures,
coordination, management and more especially for staff training. In terms of
marketing the following considerations can be made as follows:
-Ship-loss means loss of an asset of the company. For this reason, the
ship is obvious need to provide for recovery of its value.
-The ship was lost, the company must perform a series of expenditures
for:
-Rescue crew
-Repatriation of crew members
-Compensation for property loss or personal values,
-Payment of claims for pollution, etc..
For such situations, the company must open a provision to have an
amount of reserves to cope with all problems.
-In case of loss of vessel, shipping company's image will suffer, can be
affected relationships with other clients, their confidence in the company may
decrease, which term may even lead to bankruptcy.
-The marketing department or public relations, must inform families of
crew members, public opinion, media and customers about the real situation,
about the causes of the disaster.
The company be organized a special working group that is ready to act or
to adopt the measures necessary in such situations.