The role of the management style in the performance of shipping companies
KeywordsManagement ; Performance ; Shipping ; Shipping companies ; Evaluation ; Management style ; Organization ; Key performance indicators ; Financial performance ; Success in business
The main purpose of the thesis is to introduce the moderating role of the management style in the performance of shipping companies. Management style is one of the most important decision a company can take, yet through Gallup’s research found that organizations choose the wrong manager a whopping 82% of the time. Wrong management styles and bad managers costs business millions of dollars and affect her image, her performance and her corporate behavior. Although the effects are not only economics, they affect both employee motivation & productivity. Every company adopts different management styles when dealing with their subordinates and with their superiors. Moreover, management style is significantly related to manager fixed effects in performance and that managers with higher performance fixed effects receive higher compensation and are more likely to be found in better governed firms. More specifically, management is the process of guiding the development, maintenance, and allocation of resources to attain organizational goals, so managers are the people in the organization responsible for developing and carrying out this management process. Management is dynamic by nature and evolves to meet needs and constraints in the organization’s internal and external environments. In a global marketplace where the rate of change is rapidly increasing, flexibility and adaptability are crucial to the managerial process. This process is based in four key functional areas of the organization: planning, organizing, leading, and controlling. We are going to explain more about the organization in the chapters below and how the management is related to the performance of a shipping company. The analysis for the management styles helps us understand according to our organization witch management style we should adopt and which one we should avoid. There are specific KPI’s that measure performance in shipping companies and of course according to the management style we have different financial outcome and different financial performance.