TUTORIAL 1: SHIPYARD ORGANIZATION STRUCTURE AND MANAGEMENT

Course: Shipyard Management and Project Planning LGB 20303

Name: NUR SYAZWANI BT MOHD NASIRRUDDIN

ID: 56212116105

Group: L02-T01

1. “Greater competitiveness among shipyards worldwide is driving shipyards to embark

on cost saving measures and adopting on most modern, most effective and technologically

advanced approaches in shipyard management”. By focusing on an effective organization

structure and management approach, carry out a literature review on this issue and write up a

short report (about 5 pages, Font 12, Times New Roman, 1.5 spacing) in English, featuring the

standard format of a report eg Table of contents, Introduction, Discussion of issues,

Conclusion/Recommendations and References.

2. Submit your report by next lecture period

Contents
1.0 Introduction

2.0 Discussion of Issues

3.0 Conclusion

1.0 Introduction

Shipbuilding is known as one of the oldest, most open and highly competitive markets in
the world. Although shipbuilding industry has a big experience in how to survive over peaks and
slumps of economy. Shipbuilding affects not only the country's balance of trade and
employment, but also the entire economy. Because of its great impact on the economy,
shipbuilding enjoys a certain political and economic support worldwide. As other sectors of
industry don’t have such treatment, in Malaysian however the aid is limited and focused on
achieving profitability.

2.0 Discussion of issues

At Management Systems, we have a unique approach to organizational structure that focuses

on three distinct, yet related levels:

1. Macro Structure – the boxes on an organization chart and how they are arranged.
2. Micro Structure – how the roles and responsibilities of each position-holder are defined
and how these “role descriptions” are managed.

3. Supporting Systems – the systems (operational systems, management systems, and

corporate culture management systems) that are in place to promote the effective
implementation of the organization’s structure.
We have developed a set of criteria that can be used to assess the effectiveness of the current and
design the future organizational structure. These criteria are:

1. Strategy/Structure Alignment – the extent to which the current or how the proposed
future structure supports the achievement of the organization’s goals.
2. Functional Contribution – the extent to which each function in the current structure has
a well-defined function that adds value or the value-added role that each function will
play in the proposed future structure.

3. Clarity and Contribution of Individual Roles – the extent to which each individual role
is clearly defined and contributes to the achievement of company Goals or how each role
should be defined to promote effective and efficient achievement of company Goals.

4. Clarity and Structure of Reporting Relationships – the extent to which reporting

relationships and decision making are clear and well-structured or how reporting
relationships should be structured to support the achievement of company Goals.

The approach orientation is the fundamental change in the perception of the organization
and represents a decisive shift away from traditional vertical - hierarchical view of the execution
of tasks, in relation to the view that emphasizes the horizontal connections between functions.

As the simplest approach, a functional structure features well‐defined channels of

communication and authority/responsibility relationships. Not only can this structure improve
productivity by minimizing duplication of personnel and equipment, but it also makes employees
comfortable and simplifies training as well.

But the functional structure has many downsides that may make it inappropriate for some
organizations. Here are a few examples:
 Decisions and communication are slow to take place because of the many layers of
hierarchy. Authority is more centralized.
 The functional structure can result in narrowed perspectives because of the separateness
of different department work groups. Managers may have a hard time relating to
marketing, for example, which is often in an entirely different grouping. As a result,
 anticipating or reacting to changing consumer needs may be difficult. In addition,
reduced cooperation and communication may occur.

3.0 Conclusion
This study is to analyze the effective organization structure and management approach in
shipyard management.

Complex research about the organizational structure in management system and also
developed a set of criteria that used to assess the effectiveness of the current and design the
future organizational structure.