Methodical approaches to the management of the crewing company efficiency

Economic Annals-ХХI: Volume 177, Issue 5-6, Pages: 114-125

Citation information:
Grebennyk, N., Navrozova, Yu., Danchenko, O., & Jakubek, P. (2019). Methodical approaches to the management of the crewing company efficiency. Economic Annals-XXI, 177(5-6), 114-125. doi: https://doi.org/10.21003/ea.V177-10

Natalia Grebennyk
PhD (Economics),
Associate Professor,
Department of Entrepreneurship and Tourism,
Odessa National Marine University
34 Mechnikov Str., Odessa, 65029, Ukraine
nataly.grebennyk@gmail.com
ORCID ID: https://orcid.org/0000-0002-1554-0697 

Yuliia Navrozova
PhD (Economics),
Associate Professor,
Department of Entrepreneurship and Tourism,
Odessa National Marine University
34 Mechnikov Str. Odessa, 65029, Ukraine
yuliana_docent@hotmail.com
ORCID ID: http://orcid.org/0000-0002-6106-2825 

Oleksiy Danchenko
PhD Student (Economics),
Odessa National Marine University;
Crewing Manager,
Crewing Company «Global Odessa»
34 Mechnikov Str., Odessa, 65029, Ukraine
lexdanuniversal@gmail.com
ORCID ID: https://orcid.org/0000-0001-7467-4866 

Peter Jakubek
PhD (Economics),
Associate Professor,
DTI University (Dubnica Institute of Technology)
533/20 Sládkoviиova Str., Dubnica nad Váhom, 018 41, Slovakia
kvestor@dti.sk
ODCID ID: https://orcid.org/0000-0002-3080-307X 

Methodical approaches to the management of the crewing company efficiency

Abstract. Under the conditions of personnel shortage and access to the world market, the availability of an effective system for managing effectiveness is a decisive factor in the successful functioning of a crewing company. The purpose of the paper is to develop a methodology to enhance seafarers’ efficiency for a crewing company. To do this, different approaches to managing crewing company effectiveness are examined in this paper, taking into account peculiarities of crewing and the conditions in the global seafarer market.

Unlike the existing ones, the approach proposed by the authors allows giving recommendations for improving efficiency of crewing companies. Therefore, according to experimental calculations provided by Global Odessa crewing company, the highest profit can be made with full crewing management (USD 416,220 per contract). According to the same scheme, the highest profit in USD per seafarer (USD 16,664.9 per seafarer) is also observed. The developed CUBE provides the opportunity to demonstrate different categories of seafarers, which further helps the crewing company identify those seafarers who meet its needs to achieve a specific goal in the management of its effectiveness. For example, with a base indicator of 4.25, there are two possible scenarios in performance management. With a minimum of investments, the most «profitable» employees for the crewing company will be those seafarers who, according to their characteristics, correspond to the «premium» group, have a normal or excellent ratio of the seafarer age and experience and receive positive reference with a high professional assessment from the previous employer-shipowner. The most promising with regard to training are those seafarers who get into a block with the following characteristics: the «standard» group with favourable «age – experience» and «Shipping company’s references – characteristics» ratio.

The conducted research has shown that in order to ensure the effectiveness of the crewing company, different ways of managing the efficiency are possible, depending on the purpose of the operation and the balance of supply and demand on the seafarer market. In some cases, the company can attract any seafarers, and in the others it will be more appropriate for the company to focus on finding prospective or profitable seafarers.

Keywords: Crewing Company; Seafarer; Efficiency; Profitability; Qualification

JEL Classification: J40; M21

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V177-10

References

1. Volkova, N. A., & Kolyada, A. L. (2015). Analytical methods of efficiency management at an enterprise. Vestnik Tverskogo Gosudarstvennogo Universiteta. Seriya: Ekonomika. Menedzhment (Newsletter of the Tver State University. Series of Works: Economics and Management), 3, 111-117 (in Russ.).
2. Goncharov, V. V. (1998). In search of excellence in management: A guide for senior management personnel. In 2 toms. Tom 2. Moscow: MNIIPU (in Russ.).
3. Gavva, V. N., & Goddess, E. A. (2004). Enterprise potential: formation and evaluation. Kyiv: Center for Educational Literature (in Ukr.).
4. Kaplan, R. S., & Norton, D. P. (2003). Balanced Scorecard. From strategy to action. Moscow: ZAO Olymp-Business.
   Retrieved from https://www.twirpx.com/file/270862 (in Russ.)
5. Kozak, H. (2001, May 23). Balanced system of assessment indicators as a tool for business management.
   Retrieved from https://www.cfin.ru/management/bsc2.shtml (in Russ.)
6. Orlikovsky, M. O., & Trokoz, D. I. (2014). The last concepts of performance management of modern enterprises. Efektyvna Ekonomika (Effective Economy), 5.
   Retrieved from http: http://www.economy.nayka.com.ua/?op=1&z=3034 (in Ukr.)
7. Govorushko, T. A., & Klimash, N. I. (2013). Managing the performance of enterprises based on a value-based approach. Kyiv: Logos (in Ukr.).
8. Sinigovets, O. M. (2010). Modern approaches to assessing the effectiveness of an enterprise. Visnyk NTU «KhPI». Seriya: Tekhnichnyi Progres i Efektyvnist Vyrobnytstva (Bulletin of the NTU «KhPI». Series: Technical Progress and Production Efficiency), 58, 8-13 (in Ukr.).
9. Chernega, O. M. (2013). System approach to the performance management. Naukovyi Visnyk. Odeskyi Natsionalnyi Ekonomichnyi Universytet. Vseukrainska Asotsiatsiia Molodykh Naukovtsiv (Scientific Bulletin. Odesa National Economic University. All-Ukrainian Association of Young Scientists), 195(16), 45-54.
   Retrieved from http://dspace.oneu.edu.ua/jspui/handle/123456789/1764 (in Ukr.)
10. Pasyuk, E. D. (2008). Mechanisms to improve the efficiency of services provided by the crewing companies in the maritime labour market (Doctoral dissertation). Maritime State Academy named after Admiral F. F. Ushakova. St. Petersburg.
    Retrieved from https://www.dissercat.com/content/mekhanizm-povysheniya-effektivnosti-uslug-okazyvaemykh-kruingovymi-kompaniyami-na-morskom-ry (in Russ.)
11. Bundyuk, R. A. (2011). Personnel management of a crewing company of a shipping company: theory and practice. Odessa: Phenix (in Russ.).
12. Lazareva, N. O. (2015). Understanding the Business PERFormance Management. Ekonomichnyi Visnyk Donbasu (Economic Bulletin of Donbas), 40(2), 105-109.
    Retrieved from http://dspace.nbuv.gov.ua/handle/123456789/87861 (in Ukr.)
13. Danchenko, O. O. (2017). The essence and peculiarities of formation of financial results of work of crewing company. Rozvytok Metodiv Upravlinnia ta Hospodariuvannia na Transporti (Development of Methods of Management and Economics of Transport), 59(2), 41-54 (in Ukr.).
14. The Baltic and International Maritime Council (BIMCO) & the International Chamber of Shipping (ICS) (2015). Manpower Report. The global supply and demand for seafarers in 2015.
    Retrieved from http://www.ics-shipping.org/docs/default-source/resources/safety-security-and-operations/manpower-report-2015-executive-summary.pdf?sfvrsn=16
15. Dragomir, C., & Utureanu, S. (2012). Seafarers’ Employment Procedures in Crewing Companies. Journal of Applied Economic Sciences, 12(2)
    Retrieved from https://www.researchgate.net/publication/249000109_
    Seafarers%27_Employment_Procedures_in_Crewing_Companies
16. Angelos, A. M. (2011). Crew Management Administrative Processes and Information Technology Tools Aiming at Improving Productivity and Quality of Work – The Case of Marlow Navigation. London: Middlesex University.
    Retrieved from https://core.ac.uk/download/pdf/17301563.pdf
17. Deming, D., & Kahn, L. B. (2017). Skill requirements across firms and labor markets: evidence from job postings for professionals. National Bureau of Economic Research. Working Paper No. 23328.
    doi: https://doi.org/10.3386/w23328
18. Kotur, B. R., & Anbazhagan, S. (2014). Education and Work-Experience – Influence on the Performance. IOSR Journal of Business and Management, 16(5), 104-110.
    doi: https://doi.org/10.9790/487X-1653104110
19. The Ministry of Infrastructure of Ukraine (2017). Financial plan of the inspection on training and certification of seafarers for 2017-2019.
    Retrieved from https://mtu.gov.ua/timeline/inspekciya-z-pitan-pidgotovki-ta-diplomuvannya-moryakiv.html (in Ukr.)
20. International Maritime Organization (1978). The International Convention on Standards of Training, Certification and Watchkeeping for Seafarers.
    Retrieved from http://www.imo.org/en/OurWork/HumanElement/TrainingCertification/Pages/STCW-Convention.aspx
21. Hollebrands, J. (2012). Performance-based contracting: a new tool in ship management?
    Retrieved from https://pdfs.semanticscholar.org/e6c2/d933d710b0d8d5fb7b1c0db773cf94685406.pdf
22. Jatau, S. U. (2002). Ship manning and safety: problems in the recruitment, selection and retention of seafarers: a global view (Doctoral dissertation). World Maritime University. Malmö.
    Retrieved from https://catalog.wmu.se/cgi-bin/koha/opac-detail.pl?biblionumber=16928
23. Čampara, L., Frančić, V., & Bupić, M. (2017). Quality of maritime higher education from seafarers’ perspective. Scientific Journal of Maritime Research, 31(2), 137-150.
    doi: https://doi.org/10.31217/p.31.2.8
24. Inderveer, S. (2007). Empowering the seafarer: manpower solution of the shipping industry (Doctoral dissertation). World Maritime University. Malmö.
    Retrieved from https://commons.wmu.se/cgi/viewcontent.cgi?article=1123&context=all_dissertations

Received 19.05.2019
Received in revised form 31.07.2019
Accepted 10.08.2019
Available online 18.09.2019