Question and Answers

12-june-2019 EM 101

Q1

‘X’ is the owner and manager of a company with ten employees. ‘X’ hires you to take over the functions of the HRM in the company ‘X’ believes that the company may be able to save costs by allowing employees to work from home one or two days in a week. However, He has some concerns about productivity if he allows employees to work from home. Despite these concerns, ‘X’ has even considered closing down the physical office and making his company a virtual organization, but he wonders how such a major change will affect the ability of the employees to communicate and what impact it will have on their motivation. “X also shares with you his thoughts about the costs of health care on the organization. He has considered cutting benefits entirely and having his employees work for him on a contract basis, instead of being full-time employees. He isn’t sure if this would be a good choice. During your first two weeks, you find out that the company is expected to experience overall revenue growth by 10 percent over the next three years, with some quarters secing growth as high as 30 percent. However, five of the ten workers are expected to retire within three years. These workers have been with the organization since the beginning and provide a unique historical perspective of the company. The other five workers are of diverse ages. ‘X’ schedules a meeting with you to discuss some of his thoughts. To prepare for the meeting, you perform research so you can provide your new employer with recommendations on the challenges presented.

1. Point out which changes are occurring in the business that affects HRM.

2. What considerations the company and HR should be aware of when making changes related to this case study?

3 What would the initial steps be to start planning for these changes?

4. What would your role be in implementing these changes and what role would you suggest for “X”?

5. What impact the proposed changes could have on the prospects of the company?

** 1. Changes Affecting HRM:** 

• Shift to Remote or Virtual Work: The potential move to remote work, either partially or entirely, changes how performance is managed, collaboration occurs, and company culture is maintained.
• Workforce Transition and Retirement: With five out of ten employees set to retire in three years, the company faces a significant loss of institutional knowledge and experience.
• Growth and Scaling: Projected revenue growth of up to 30% in some quarters may require additional hiring and enhanced workforce capabilities.
• Potential Shift to Contract-Based Workforce: Moving from full-time employees to contract workers changes the approach to benefits, job security, and company loyalty. 2. Considerations for Change:
• Productivity and Communication: Remote work can boost productivity for some but may hinder collaboration and real-time communication.
• Employee Motivation and Morale: Reducing benefits or transitioning to contract work may lower job satisfaction and increase turnover.
• Knowledge Retention: The impending retirement of long-term employees requires a strategy to capture their expertise.
• Scalability: Rapid growth demands a scalable HR strategy for recruitment, onboarding, and development. 3. Initial Planning Steps:
• Conduct Employee Surveys: Assess employees’ willingness and readiness for remote work and their views on benefit changes.
• Knowledge Transfer Plan: Develop mentorship and documentation programs to preserve institutional knowledge.
• Workforce Planning: Identify future talent needs aligned with projected growth.
• Cost-Benefit Analysis: Compare the financial impact of maintaining full-time employees versus transitioning to a contract-based workforce. 4. Implementation Roles:
• HRM’s Role: Drive change management, support employee engagement, and develop strategic HR plans.
• X’s Role: Set the vision, make final decisions, and maintain open communication with employees. 5. Impact on Company Prospects:
• Positive Impacts: Remote work and contract flexibility can reduce costs and increase scalability.
• Potential Risks: Loss of institutional knowledge, lower morale, and recruitment challenges could harm productivity and growth.
• Balanced Approach: A hybrid model, phased retirement plans, and strategic hiring can mitigate risks while supporting growth.

Q.2

You are the newly appointed Marketing Manager of a privately operated Container Terminal in a Port of india. The Port has two other Container Terminals, operated by other private parties. (All the three terminals are leased out to the operators on revenue share basis). The Port is connected to the hinterland by rail and road. Capacity of rail and road is limited, but capacity expansion projects are already underway (Doubling railway lines and road 4-laning). Your terminal has secured additional yardage space near the Port. The terminal has three high-capacity Rail-mounted Port-Panamax Gantry Cranes on the dockside and sufficient RTGs and forklifts for Yard handling of Containers. The Operators are planning to install rail lines on the terminal to provide direct access to rail wagons from the main line. While your Terminal has one large Container Line as a captive client (5-year contract), there are many other mainline and feeder services who are potential clients, some of whom are being served by competing terminals.

Draw up a 5-year Marketing Strategy for your Terminal so as to achieve the business growth targets set by the terminal operators. [40 Marks]

5-Year Marketing Strategy for the Container Terminal.

1. Market Analysis and Positioning Assess Competitor Strengths and Weaknesses: Evaluate the services, pricing, and efficiency of the two competing terminals. * Identify Target Customers: Focus on mainline and feeder services not currently using our terminal. * Highlight Infrastructure Advantages: Emphasize the additional yard space, high-capacity gantry cranes, and planned rail connectivity. ** 2. Service Differentiation**

• Offer Faster Turnaround Times: Leverage state-of-the-art equipment to reduce vessel berthing and container handling times.
• Ensure Seamless Hinterland Connectivity: Collaborate with rail and road authorities to expedite capacity expansion and minimize delays.
• Promote Rail-Direct Services: Market the upcoming on-terminal rail line as a cost-effective and efficient transport option. ** Customer Acquisition and Retention**
• Incentivize New Clients: Offer competitive pricing and volume-based discounts for new shipping lines.
• Strengthen Relationships with Existing Clients: Ensure high service standards and exclusive benefits for the captive client.
• Develop Tailored Service Packages: Offer customized handling and storage solutions based on client needs. 4. Infrastructure and Operational Enhancement
• Expedite Rail Line Installation: Prioritize the completion of rail lines to offer on-terminal rail access.
• Maximize Yard Efficiency: Use advanced yard management systems to optimize container stacking and retrieval.
• Expand Equipment Capabilities: Ensure adequate maintenance and readiness of cranes, RTGs, and forklifts. 5. Marketing and Outreach
• Digital Presence and Branding: Develop a professional website and digital campaigns highlighting terminal capabilities.
• Direct Engagement: Organize client roadshows and participation in industry forums.
• Strategic Partnerships: Collaborate with freight forwarders, shipping lines, and logistics providers to drive traffic to the terminal. 6. Performance Metrics and Review
• Set Clear Growth Targets: Aim for a specific percentage increase in container throughput annually.
• Monitor Customer Satisfaction: Regularly gather feedback and address service gaps.
• Review and Adapt Strategy: Conduct biannual strategy reviews to adjust to market dynamics and infrastructure developments.

Q.3 Is Transactional Leadership a useful tool for enhancing communication in an organization. Present an analytical framework to illustrate. How is it different from Transformational or Instrumental leadership?

What is Situational/Contingency Model of Leadership? [30 Marks]

Transactional Leadership and Communication Enhancement 1. Analytical Framework for Transactional Leadership:

• Clear Structure and Expectations: Establishes well-defined roles and responsibilities.
• Performance-Based Communication: Feedback is tied directly to task completion and outcomes.
• Reward and Punishment System: Reinforces desired behavior through incentives and corrective actions.
• Efficiency in Routine Operations: Ensures smooth day-to-day functioning through standardized processes. 2. Differences Between Transactional, Transformational, and Instrumental Leadership:
• Transactional Leadership: Focuses on short-term goals, task performance, and structured supervision.
• Transformational Leadership: Inspires and motivates employees by creating a vision, encouraging innovation, and fostering personal development.
• Instrumental Leadership: Emphasizes strategic planning, goal alignment, and practical problem-solving. 3. Situational/Contingency Model of Leadership:
• Adaptive Approach: Leaders adjust their style based on the situation and team dynamics.
• Key Models: ◦ Hersey-Blanchard Model: Matches leadership style to the maturity and competence of team members. ◦ Fiedler’s Contingency Model: Considers leader-member relations, task structure, and positional power.
• Flexibility in Decision-Making: Balances directive and supportive behaviors as needed for optimal team performance.

Q.4. Describe the elements of the Financial Management? Select an organisation known to you and explain how its Financial Management might affect it? [25 Marks] Ans 4. part 1 Financial management involves the planning, organizing, directing, and controlling of financial activities within an organization. It aims to optimize the use of financial resources to achieve organizational goals. The key elements of financial management include:

1. ** Financial Planning**

• ** Objective Setting:** Defining short-term and long-term financial goals.
• ** Budgeting:** Creating a detailed plan for income and expenses.
• ** Forecasting:** Predicting future financial conditions and needs.

2. ** Capital Budgeting**

• ** Investment Decisions:** Evaluating and selecting long-term investment opportunities.
• ** Project Appraisal:** Assessing the viability and profitability of projects.
• ** Risk Analysis:** Identifying and mitigating potential risks associated with investments.

3. ** Capital Structure**

• ** Debt vs. Equity:** Determining the optimal mix of debt and equity financing.
• ** Cost of Capital:** Calculating the cost of different sources of capital.
• ** Leverage:** Understanding the impact of debt on the organization’s financial health.

4. ** Working Capital Management**

• ** Cash Management:** Ensuring sufficient liquidity to meet short-term obligations.
• ** Inventory Management:** Optimizing inventory levels to balance costs and service levels.
• ** Receivables Management:** Managing credit policies and collection processes.

5. ** Financial Control**

• ** Performance Monitoring:** Tracking financial performance against budgets and forecasts.
• ** Variance Analysis:** Identifying and analyzing deviations from planned financial outcomes.
• ** Internal Audits:** Conducting regular audits to ensure compliance and accuracy.

6. ** Risk Management**

• ** Identification:** Recognizing financial risks such as market risk, credit risk, and operational risk.
• ** Assessment:** Evaluating the potential impact and likelihood of risks.
• ** Mitigation:** Implementing strategies to reduce or manage risks.

7. ** Financial Reporting**

• ** Financial Statements:** Preparing income statements, balance sheets, and cash flow statements.
• ** Compliance:** Ensuring adherence to accounting standards and regulatory requirements.
• ** Transparency:** Providing clear and accurate financial information to stakeholders.

8. ** Dividend Policy**

• ** Profit Distribution:** Deciding on the portion of profits to be distributed to shareholders.
• ** Retained Earnings:** Determining the amount of profits to be reinvested in the business.
• ** Shareholder Value:** Balancing dividend payouts with the need for reinvestment to enhance shareholder value.

9. ** Corporate Finance**

• ** Mergers and Acquisitions:** Evaluating and executing mergers, acquisitions, and divestitures.
• ** Valuation:** Assessing the value of the company or its assets.
• ** Strategic Financial Decisions:** Making decisions that align with the overall corporate strategy.

10. ** Tax Planning**

• ** Tax Compliance:** Ensuring adherence to tax laws and regulations.
• ** Tax Optimization:** Strategizing to minimize tax liabilities.
• ** Reporting:** Preparing and filing accurate tax returns.

11. ** International Financial Management**

• ** Foreign Exchange Management:** Managing exposure to currency fluctuations.
• ** Global Investment:** Evaluating international investment opportunities.
• ** Cross-border Financing:** Understanding and managing financing options in different countries.

12. ** Ethical and Governance Considerations**

• ** Corporate Governance:** Ensuring ethical financial practices and accountability.
• ** Stakeholder Interests:** Balancing the interests of various stakeholders, including shareholders, employees, and the community.
• ** Compliance:** Adhering to legal and regulatory standards.

By effectively managing these elements, organizations can ensure financial stability, profitability, and long-term growth.

Ans 4 part 2 IL&FS (Infrastructure Leasing & Financial Services) was a major Indian infrastructure development and finance company that faced a significant financial crisis in 2018. The company’s downfall was attributed to several factors, including financial mismanagement. Here are some key events and decisions that contributed to IL&FS’s financial woes:

1. Over-expansion and Diversification IL&FS expanded rapidly into various sectors, including roads, energy, and real estate. This diversification led to a complex web of subsidiaries and joint ventures, making it challenging to manage risk and maintain financial discipline.

2. Aggressive Lending and Investment IL&FS engaged in aggressive lending and investment activities, often without adequate risk assessment and due diligence. This led to a significant buildup of non-performing assets (NPAs) and stressed assets.

3. High Leverage and Debt IL&FS relied heavily on debt to finance its expansion and investments. The company’s debt-to-equity ratio was extremely high, making it vulnerable to interest rate changes and liquidity crises.

4. Poor Governance and Risk Management IL&FS’s governance structure and risk management practices were inadequate, allowing for poor decision-making and a lack of oversight. The company’s board and management failed to address the growing risks and financial stress.

5. Accounting Irregularities and Fraud Investigations revealed accounting irregularities and fraudulent activities within IL&FS, including the use of complex financial instruments to conceal the true state of the company’s finances.

6. Liquidity Crisis and Default In 2018, IL&FS faced a severe liquidity crisis, which led to a series of debt defaults. The company’s financial woes triggered a contagion effect, impacting the entire Indian financial system.

7. Government Intervention and Restructuring The Indian government intervened to prevent a complete collapse of IL&FS. The company underwent a significant restructuring, including the appointment of a new board and management, and the sale of various assets to reduce debt.

The IL&FS crisis highlighted the importance of robust governance, risk management, and regulatory oversight in the financial sector. It also underscored the need for companies to maintain prudent financial practices and avoid excessive leverage and risk-taking

05 What factors and activities contribute to success in entrepreneurship? With the example of a successful venture you may have come across, analyse the issues related to entrepreneurship. [30 Marks] Ans 5 Part 1 Success in entrepreneurship is influenced by a combination of personal traits, strategic actions, and external factors. Here are the key factors and activities that contribute to entrepreneurial success:

Personal Traits and Skills

1. ** Vision and Passion**

   • ** Clear Vision:** Having a clear and compelling vision for the future.
   • ** Passion:** Being deeply committed and enthusiastic about the business idea.

2. ** Resilience and Perseverance**

   • ** Resilience:** Ability to bounce back from setbacks and failures.
   • ** Perseverance:** Staying committed to long-term goals despite challenges.

3. ** Creativity and Innovation**

   • ** Creativity:** Thinking outside the box to develop unique solutions.
   • ** Innovation:** Continuously improving and adapting products or services.

4. ** Risk-taking and Decision-making**

   • ** Risk-taking:** Willingness to take calculated risks.
   • ** Decision-making:** Making informed and timely decisions.

5. ** Leadership and Management Skills**

   • ** Leadership:** Inspiring and guiding a team towards common goals.
   • ** Management:** Effectively organizing and managing resources.

Strategic Actions

1. ** Market Research and Analysis**

   • ** Understanding the Market:** Conducting thorough market research to understand customer needs and preferences.
   • ** Competitive Analysis:** Analyzing competitors to identify opportunities and threats.

2. ** Business Planning**

   • ** Business Plan:** Developing a comprehensive business plan outlining goals, strategies, and financial projections.
   • ** Goal Setting:** Setting clear, measurable, and achievable goals.

3. ** Financial Management**

   • ** Budgeting:** Creating and managing budgets to control costs.
   • ** Funding:** Securing adequate funding through investors, loans, or other sources.
   • ** Cash Flow Management:** Ensuring sufficient cash flow to meet operational needs.

4. ** Marketing and Sales**

   • ** Branding:** Building a strong brand identity.
   • ** Marketing Strategies:** Implementing effective marketing strategies to attract and retain customers.
   • ** Sales Techniques:** Developing and refining sales techniques to drive revenue.

5. ** Customer Focus**

   • ** Customer Service:** Providing excellent customer service to build loyalty.
   • ** Feedback:** Actively seeking and responding to customer feedback.

6. ** Networking and Relationships**

   • ** Networking:** Building a strong network of contacts, including mentors, partners, and industry experts.
   • ** Relationships:** Cultivating strong relationships with customers, suppliers, and stakeholders.

External Factors

1. ** Market Conditions**

   • ** Demand:** Operating in a market with strong demand for the product or service.
   • ** Trends:** Staying attuned to market trends and adapting accordingly.

2. ** Economic Environment**

   • ** Economic Stability:** Operating in a stable economic environment.
   • ** Access to Capital:** Availability of funding and investment opportunities.

3. ** Regulatory Environment**

   • ** Compliance:** Adhering to legal and regulatory requirements.
   • ** Support:** Taking advantage of government programs and incentives for entrepreneurs.

4. ** Technological Advancements**

   • ** Innovation:** Leveraging new technologies to improve products, services, and operations.
   • ** Efficiency:** Using technology to enhance efficiency and reduce costs.

Continuous Improvement

1. ** Learning and Adaptation**

   • ** Continuous Learning:** Staying informed about industry developments and best practices.
   • ** Adaptation:** Being flexible and willing to pivot strategies as needed.

2. ** Performance Monitoring**

   • ** Metrics:** Tracking key performance indicators (KPIs) to measure success.
   • ** Adjustments:** Making data-driven adjustments to strategies and operations.

3. ** Team Building**

   • ** Talent Acquisition:** Hiring and retaining skilled and motivated employees.
   • ** Team Development:** Investing in training and development to build a strong team.

Ethical and Social Responsibility

1. ** Ethical Practices**

   • ** Integrity:** Conducting business with honesty and integrity.
   • ** Transparency:** Maintaining transparency in operations and communications.

2. ** Social Responsibility**

   • ** Community Engagement:** Contributing positively to the community.
   • ** Sustainability:** Implementing sustainable practices to minimize environmental impact.

By focusing on these factors and activities, entrepreneurs can enhance their chances of success and build sustainable, thriving businesses. Part 2 Zomato, a leading global food delivery and restaurant discovery platform, exemplifies how the principles of entrepreneurship can drive success. Here’s how various entrepreneurial principles contributed to Zomato’s growth and success:

Vision and Passion

1. ** Clear Vision**

   • ** Founder’s Vision:** Deepinder Goyal and Pankaj Chaddah envisioned a platform that would simplify food discovery and delivery, addressing a common pain point for food lovers.
   • ** Mission:** Zomato’s mission to provide better food for more people resonated with a broad audience.

2. ** Passion**

   • ** Commitment:** The founders’ passion for solving real-world problems and their commitment to the vision kept them motivated through challenges.

Resilience and Perseverance

1. ** Resilience**

   • ** Adaptability:** Zomato faced numerous challenges, including intense competition and regulatory hurdles, but adapted by continuously evolving its business model.
   • ** Persistence:** The company persisted through initial failures and setbacks, learning and improving along the way.

2. ** Perseverance**

   • ** Long-term Focus:** Zomato maintained a long-term focus, investing in technology, market expansion, and customer experience despite short-term obstacles.

Creativity and Innovation

1. ** Creativity**

   • ** Unique Solutions:** Zomato introduced innovative features like user reviews, photos, and menus, which differentiated it from competitors.
   • ** Customer Engagement:** Creative marketing campaigns and loyalty programs helped build a strong customer base.

2. ** Innovation**

   • ** Technology:** Leveraging technology to enhance user experience, such as AI-driven recommendations and real-time order tracking.
   • ** Diversification:** Expanding services beyond restaurant discovery to include food delivery, table reservations, and subscription-based dining programs.

Risk-taking and Decision-making

1. ** Risk-taking**

   • ** Market Expansion:** Zomato took calculated risks by expanding into international markets, which paid off by establishing a global presence.
   • ** Acquisitions:** Strategic acquisitions, such as Urbanspoon, helped Zomato enter and dominate new markets.

2. ** Decision-making**

   • ** Data-driven Decisions:** Using data analytics to make informed decisions about market trends, customer preferences, and operational efficiencies.
   • ** Agility:** Quick decision-making allowed Zomato to capitalize on emerging opportunities and respond to market changes.

Leadership and Management Skills

1. ** Leadership**

   • ** Visionary Leadership:** Deepinder Goyal’s leadership provided a clear direction and inspired the team to achieve ambitious goals.
   • ** Team Building:** Building a strong, motivated team that shared the company’s vision and values.

2. ** Management**

   • ** Operational Efficiency:** Effective management of operations, logistics, and customer service ensured a seamless user experience.
   • ** Resource Allocation:** Efficient allocation of resources to high-impact areas like technology development and market expansion.

Market Research and Analysis

1. ** Understanding the Market**

   • ** Customer Insights:** Conducting thorough market research to understand customer needs and preferences.
   • ** Competitive Analysis:** Analyzing competitors to identify gaps and opportunities.

2. ** Business Planning**

   • ** Strategic Planning:** Developing a comprehensive business plan that outlined growth strategies, financial projections, and risk management.

Financial Management

1. ** Budgeting and Funding**

   • ** Funding:** Securing funding from investors to fuel growth and expansion.
   • ** Financial Discipline:** Maintaining financial discipline to ensure sustainable growth.

2. ** Cash Flow Management**

   • ** Operational Efficiency:** Ensuring sufficient cash flow to meet operational needs and invest in growth opportunities.

Marketing and Sales

1. ** Branding**

   • ** Strong Brand Identity:** Building a strong brand that became synonymous with food discovery and delivery.
   • ** Customer Loyalty:** Implementing loyalty programs and customer engagement strategies to build a loyal customer base.

2. ** Marketing Strategies**

   • ** Digital Marketing:** Leveraging digital marketing channels to reach a wide audience.
   • ** Partnerships:** Forming strategic partnerships with restaurants and food brands to expand reach and offerings.

Customer Focus

1. ** Customer Service**

   • ** User Experience:** Prioritizing user experience with an intuitive interface and responsive customer support.
   • ** Feedback Loop:** Actively seeking and responding to customer feedback to continuously improve services.

2. ** Networking and Relationships**

   • ** Stakeholder Engagement:** Building strong relationships with restaurants, delivery partners, and investors.
   • ** Community Building:** Engaging with the foodie community through events, social media, and content marketing.

Continuous Improvement

1. ** Learning and Adaptation**

   • ** Continuous Learning:** Staying informed about industry trends and technological advancements.
   • ** Adaptation:** Being flexible and willing to pivot strategies based on market feedback and changing conditions.

2. ** Performance Monitoring**

   • ** KPIs:** Tracking key performance indicators to measure success and identify areas for improvement.
   • ** Data Analytics:** Using data analytics to drive continuous improvement in operations and customer experience.

Ethical and Social Responsibility

1. ** Ethical Practices**

   • ** Integrity:** Conducting business with honesty and transparency.
   • ** Fair Practices:** Ensuring fair practices in dealings with restaurants, delivery partners, and customers.

2. ** Social Responsibility**

   • ** Community Engagement:** Contributing to the community through initiatives like feeding programs and support during crises.
   • ** Sustainability:** Implementing sustainable practices in operations and encouraging eco-friendly packaging.

By adhering to these entrepreneurial principles, Zomato was able to navigate the complexities of the food tech industry, build a strong brand, and achieve significant growth and success. Q.6 What principles of compensation would you apply for a large organization with multiple specializations, task diversity and many layers of staff and management? What are the likely sources of discontent with respect to compensation in such an organization? [25 Marks) Designing an effective compensation strategy for a large organization with multiple specializations, task diversity, and numerous layers of staff and management requires careful consideration of various principles. Here are key principles to consider:

1. ** Market Competitiveness** : Ensure that compensation packages are competitive within the relevant labor market. Conduct regular market surveys to benchmark salaries and benefits against industry standards, taking into account regional differences.

2. ** Internal Equity** : Establish a fair and transparent pay structure that values roles based on their responsibilities, required skills, and contributions to the organization. This involves creating a job evaluation process to assess the relative value of different positions.

3. ** Performance-Based Compensation** : Implement performance-based pay structures, such as bonuses or merit increases, that incentivize high performance and align employee efforts with organizational goals. This can include individual, team, and organizational performance metrics.

4. ** Diversity and Inclusion** : Develop compensation practices that promote equity and inclusion. Ensure that pay practices are free from biases related to gender, ethnicity, age, or other factors, thus fostering a diverse workplace.

5. ** Flexibility and Customization** : Consider flexible compensation options to meet the diverse needs of employees. This may include choices in benefits, work-life balance options, and opportunities for professional development, recognizing that different roles and employees may have varying preferences.

6. ** Total Compensation Approach** : Look beyond base salary to encompass total compensation, including bonuses, benefits (health insurance, retirement plans, etc.), stock options, and non-monetary perks (work environment, culture, etc.). Highlighting the value of the complete package can enhance employee satisfaction and retention.

7. ** Clear Communication** : Provide clear and transparent communication regarding compensation policies, structures, and processes. This fosters trust and understanding among employees and helps them appreciate the benefits of their total compensation.

8. ** Regulatory Compliance** : Ensure compliance with labor laws and regulations, including minimum wage, overtime, equal pay, and taxes. Regular audits are essential to maintain compliance and avoid costly penalties.

9. ** Regular Review and Adjustments** : Establish a process for regularly reviewing and adjusting compensation strategies to adapt to changing market conditions, economic factors, and organizational needs. This ensures that compensation remains relevant and competitive over time.

10. ** Employee Involvement and Feedback** : Engage employees in discussions about compensation and solicit feedback on the effectiveness of compensation strategies. This can include surveys or focus groups, helping to align compensation with employee expectations and values.

11. ** Career Progression and Development** : Include structured career progression and development opportunities as part of the compensation philosophy. This helps motivate employees by providing clear pathways for advancement and increases retention.

By applying these principles, a large organization can create a compensation strategy that supports its diverse workforce, enhances employee engagement, and drives overall organizational success. EM 102 13 -06-19 Q.1.Read the case study and answer the questions: China’s seaborne iron ore imports last year accounted for over 70% of global imports, 1,047mt out of 1,476mt. But the 2018 import total was 1% down on 2017, the first year-on-year decline since 2010, when the country’s imports fell 1.5% to 619mt from 628mt in 2009. The latest Dry Bulk Trades outlook forecasts for the country indicates flat imports this year of 1,048mt, down 1.5% from its early January estimate of 1,064mt. The 16mt shortfall represents a combination of lower available iron ore supply and weaker iron ore import demand. The situation in the said country is that steel prices have fallen, while raw material input costs have risen, leading to an untenable squeeze on steel mill margins. In January/February this year, the country imported 174.4mt of iron ore, down 5.5% on the 184.6mt that it imported in the same period last year. There is the distortional impact of the lunar new-year holidays, when steel mills and traders shut down for up to two weeks, and the impact of rising iron ore prices as availability shrank in 1” quarter. 62% Fe, CFR China iron ore prices rose 24% from $74.6pmt on 25 January to $92.3pmt on 7 February. They then dipped to a low of $84.5pmt on 11 March before recovering to $92.2pmt yesterday. Prices averaged under $70 a tonne in 2018. When prices rise, buyers in that country buy less, draw down their port and other stocks, switch to lower grade imports, and use inferior quality and cheaper domestic supplies. Some blast furnace output is replaced by electric are furnaces that use steel scrap as feedstock. The end result is lower iron ore demand, and higher imports from nearby country at the expense of long-haul imports: a tonne-mile loss. This is disastrous cocktail for capesize bulk carriers. Through the fog of distorting factors, it is hard to assess what is temporary and what is structural. Import tariffs raise prices for households and reduce discretionary spending. The countries slower economic growth, 6.6% last year and possibly 6.3% this year, are the lowest rates of GDP growth in the last 30 years. The country is transitioning to lesser levels of industrial and manufacturing intensity as it tackles pollution, outsources functions to Southeast Asia and reduces over-capacity as it rolls out and supports its Belt and Road Initiative. In industrial terms, it is a progressive switch from heavy industry to light industry as services grow. Capes and other bulk carriers were expected to benefit from a supply-led rather than a demand-led recovery this year. We anticipated low levels of tonnage supply and robust demand growth, but QI’s events require the forecasts to be adjusted down a bit. As usual, we have witnessed mass panic as a series of what should be temporary events have hijacked sentiment and confidence. This quickly depresses freight rates, earnings and values. Questions to answer

1. What will be the impact of Baltic assessments on 5-year-old 180,000-dwt cape?

2. What will be the impact spot earnings over the same period?

3. Who would benefit from the change in iron ore demand?

4. What will be the impact of the unresolved US-China trade wars and its impact on Chinese demand for stuff including, for example, cars? [50 Marks] Q.2 Analyse the given case study and state if there is an improvement or deterioration in the firm’s financials. Sr. No Ratio Explanation

Last Year

Current Year

Analysis

1 EBITDA Margins EBITDA Sales 19% 17%

2 Net Profit Margins

Net Profits Sales

7% 6%

3 Solvency Debt 2% 2.5%

Equity 1% 1%

4 Interest Service Coverage Ratio EBIT 5.2% 4.5%

Interest 1% 1%

5 Inventory Turnover Ratio Sales 2.5% 1.5%

Inventory 1% 1%

6 Receivable Turnover Ratio Sales 2.8% 1.9%

Receivables 1% 1%

7 Return on Investment Profits 10% 5%

Investment

Q.3 Show how the following will be shown in the balance sheet of M/s. ‘X’ Shipping Company as on 31st March 2019 and its P&L Statement on 2019-19.

Cost (In INR) Accumulated Depreciation (INR) Property 150000000 7500000 Plant & Machinery 5500000 1100000 Vehicles 2500000 500000 Office Equipment & infrastructure 1200000 300000 The Depreciation policy is: Property 5% on a straight-line basis Plant and Machinery Straight line over 5 Years Motor Vehicles over 4 Years WDV basis Office equipment 25% on a reducing Balance

During the Year the company purchased property worth INR 30,000, 000 and one motor vehicle costing INR 25,00,000 with a residual value of 5,00,000 and new Computers worth 5,00,000 It sells of one motor vehicle which had originally cost 30,00,000 two years back for Full year depreciation is charged in the year of purchase and NIL in the year of sale. [30 Marks]

Q.4 Explain with examples the several Long-Term Sources of Finance available for organizations and the various options and distinctive features available for financing the purchase of ships. [30 Marks] Q.5 Exchange rate is the rate which is determined freely by Demand (D) and Supply (S) of currencies in the Foreign Exchange market. Explain the same. Give one example to explain the situation where the Captain of a ship creates Demand for Foreign Currency, and another example where the Captain of a ship creates Supply for the same. [30 Marks] Q6. Cost has been a dominant factor in influencing innovations and technological developments. Discuss fully (with examples) and indicate how far this is true with regard to:

(a) Cargo handling

(c) Navigation

(b) Speed of the ship

(d) Design of ship

[30 Marks]

EM 103 14-06-2019

Q.1 In September 2017, a product tanker ‘Z’ (1,597GT; built 1972), manned by 11 crew members, was at anchor at the Piraeus anchorage area in Greece, awaiting the arrival of a vessel at the Piraeus Container Terminal, to which she was scheduled to deliver bunkers late in the evening of the same day. The vessel is reported to have about 2194 metric tons of Heavy Fuel Oil; 370 MT of Marine Gas oil, about 15 metric tons of bunkers (MGO), approximately 300 litres of lubricants and 200-300 litres of chemicals, in total carrying approximately 2 580 metric tons of oil cargo, bunkers and chemicals.

The ship was insured for oil pollution risks and wreck removal. However, the ship did not have any hull insurance. The insurance policy between the ship-owner and the insurer contained an overall limit of liability of €5 million. The insurer indicated that it had offered the ship-owner additional insurance to raise its cover but that the ship-owner had indicated that it would ‘self-insure’ for any additional liabilities. However, it appears that the ship-owner did not obtain additional insurance over that provided by the insurer. Greece is a party to the Civil Liability and Fund Convention and under Greek law. Under Greek law, any ship sailing to or from a Greek port or terminal must be insured for the obligations of wreck removal towards the Greek State, up to the limits of liability specified within the Convention on Limitation of Liability for Maritime Claims (LLMC 1976)

The 45 year old vessel’s certificate had expired earlier on 26th July 2017, which was extended for 2 months up to 27th September 2017. The vessel sank at anchor before the extended certificate expired under unexplained circumstances in benign weather conditions.

Before the vessel sank at the anchorage area in the Piraeus anchorage area, the master allowed seven crew members to proceed to shore to have a meal and return on board between 2100-2130 hours, leaving four crew members on board, including the master

As bunkering was postponed for the following morning, the master contacted the crew who were ashore and asked them to return to the vessel early in the morning of the next day. At around 2315 hours, he took with him one of the crew and went ashore to have a meal, leaving the vessel manned by the two remaining crew members.

At around 0155 hours on early in the morning, while waiting to take the launch boat to return on board, the master received a phone call from one of the crew members on board, telling him that the vessel had sustained a list Approximately five minutes later, the master received a further call advising him that the situation was getting …. following which the master contacted a local tug company requesting the dispatch of two tugs to the vessel for assistance.

The launch boat with the master and the crew departed from shore at around 0215 hours and upon arrival at the casualty site at around 0230 hours, found that most of the ship’s hull was underwater, with only 3 metres of the bow being visible above the sea level. Shortly afterwards, the vessel disappeared underwater. The two crew members who were on board had in the meantime jumped in the water and were collected by the launch boat and one of the tugs which had proceeded to the site for assistance.

The sinking caused extensive pollution damage

The ship-owner was subsequently informed, who in turn gave instructions to a salvor to undertake salvage operations. The salvor sub-contracted clean-up contractors to provide assistance with the antipollution measures.

The master and the chief engineer were initially arrested and then released pending trial for negligence.

Discuss the following

a) The Greek legal system and the major differences with the Indian legal system. and reasons for the same. Who is responsible to pay for the pollution damage?

b) Was the insurance amount adequate as per the applicable Conventions and local Greek law? If the liability claims exceed the insured amount of 5 mittion Euros, how are the claims to be met? c) Is the insurer liable to make payment if the vessel was deliberately scuttled, or if it was sabotaged?

d) The legal implications of the extension given to the certificates of a 45 year old vessel.

e) Can the master and Chief engineer be criminally prosecuted for negligence? If so, what could be the grounds of prosecution and the possible defences? [50 Marks]

Q.2 The general cargo vessel ‘M’ loaded steel coils in Marseilles. The loading process was spread over several days and for some time during this period, there was a strike by the tally clerks, but loading of steel coils was not interrupted. On completion of loading, the Shipper informed the Master that 15,000 coils of steel, each weighing 2 tons had been loaded on board. The Master issued a clean ‘Bill of Lading’ for 15,000 coils stating “Shipper’s load, stow and count; 15000 coils, said to weigh 2 tons each”. The ‘Bill of Lading’ incorporated the Hague Visby Rules. The shipper endorsed the bill of lading to “P” the purchaser of the steel coils who paid the full price of 15,000 steel coils and to whom the property in the steel coils was transferred. ΘG At Mumbai the designated port of discharge, only 14,900 steel coils were found on board and were delivered to ‘P’. ‘P’ sued the owners and the Master of the vessel ‘M’ for short-delivery of 100 steel coils.

The Commissioner of Customs at Mumbai issued a ‘show-cause" notice to the Master and Owners calling upon them to explain why a penalty should not be imposed on them under the provisions of Section 116 [PENALTY FOR NOT ACCOUNTING FOR GOODS] of the Customs Act, 1962.

Discuss with reasons the following:

a) ‘P’ was not a party to the contract of carriage, which was made between the shipper and ship-owner-hence, ‘P’ had no privity to sue the ship-owner/carrier.

b) Because of the tally clerks’ strike at the load-port, there was a mistake in tallying the steel coils and that whatever was loaded and found on board had been delivered. The number of coils mentioned in the bill of lading was as per the shipper’s count. Hence there was no short-delivery to ‘P’.

c) In reply to this show cause notice issued by the Customs, the ship-owners produced records of the strike by the tally clerks as the reason for the mistake in counting and further pleaded that the quantity mentioned in the ship’s manifest was as per the shipper’s count. Is this a valid defence to avoid penalty under the Customs Act? 30 Marks]

Q.3 What is maritime fraud? Give at least four examples of maritime frauds and discuss how these may be minimised. Describe the services provided by the International Maritime Bureau to protect the integrity of international maritime trade. [30 Marks]

Q.4 Explain the salient features of the Vienna Convention on the Law of Treaties 1969. Discuss ‘pacta sund sarvanda’ and ‘jus cogens’ with examples. Also discuss the concept of ‘Reservations’ with few examples of its use by States in Conventions of the International Maritime Organization. [40 Marks]

Q.5 Discuss the impact of the Tonnage Convention on the possible reduction in size of accommodation space on ships due to the linkage of the tonnage of a vessel with port dues. What changes to the Tonnage Convention could possibly encourage ship-owners to provide additional berth space for trainees on ships? [30 Marks]

Q.6 Arbitration and Alternate Dispute Resolution have now become significant alternatives to settling disputes in a court of Law. Examine the merits and demerits of each with appropriate examples. [20 Marks]

EM 101 15-10-2019

Q.1 You are the Head of Fleet Personnel in a company. You are required to investigate a ‘Case Report’ and submit a report to your Board of Directors based on the given data and information along with your findings, clarifications (if any), and corrective action suggested including plan of action. [50 marks]

Case Report

• All the management level officers on board one of your ships have attended detailed programs on leadership distinguishing all aspects of leadership including transactional, instrumental and transformational leadership.

• Mr ‘Y’ joined the ship as a 2nd Engineer. After joining the vessel, he soon realized that the Chief Engineer (Mr ‘X’) on the vessel had a firm grip on the running of the engine room, which left little room for him to exercise his own authority. Once the initial familiarization period was over, the constant interference’ by the Chief Engineer in day-to-day matters was becoming irksome to Mr Y. While the junior Engine room staff had got used to ’toeing-the-line’, Mr ‘Y’ felt restricted in his ability to perform under the constant supervision of the Chief Engineer. Any work-related suggestions from Mr Y to the Chief Engineer were met with the refrain “Just do it the way I am telling you”.

For the first time in his twenty-odd years of sailing, the Chief Engineer felt that he was at a disadvantage…. not being sure as to how to proceed as in an unexpected burst of aggressiveness, his 2nd Engineer had declined outright to carry out the task assigned to him that day a routine inspection and maintenance work on the Ship’s Sewage Treatment Plant (STP).

The Chief Engineer Mr X hailed from a family of intellectuals, and was himself a very bright student, with a natural flair for engineering. His up-bringing was in a conservative traditionalist environment, replete with exposure to religious learning, prayer and devotion to the family deities. He was proud of his faith, and started each day with the reciting of verses from the scriptures, in obeisance to the almighty.

• Professionally, the Chief Engineer Mr X had done well for himself. He distinguished himself academically in the Marine Engineering College from where he graduated, and was fortunate to serve under benevolent senior engineers, who very generously shared their skill and experience. As the years passed, Mr X developed into a skilled Marine Engineer himself, and rapidly moved along the career path to become Chief Engineer at the age of 32 years.

• The shore management of the company was very pleased with Mr X’s performance as Chief Engineer, that when a temporary position of Marine Superintendent opened up in the shore office, Mr X was invited to fill in. After about 18 months of shore experience as Superintendent, Mr X returned to active sailing on board as Chief Engineer on the same ship which he was superintending earlier.

• As a result of his professional pride and his eye for detail, Mr X’s style of functioning was very hands-on". He was involved in every aspect of the machinery operations and maintenance, making all decisions himself and ensuring that the jobs were done to perfection. His departmental staff, though very respectful, was also rather over-dependent on him for handling, of day-to-day matters. His dominant personality had an influence on the rest of the • Blissfully unaware of all this, Mr X was confident of his abilities and felt that he was well in control of things on board. That was till 2nd Engineer Mr Y joined the ship.

• Mr Y was a relatively senior 2nd Engineer, also very capable and committed to excellence. He had performed well on previous assignments and was being considered for promotion. Being on this particular ship for the first time, he was keen to pick up the ropes quickly and gain confidence in handling his responsibilities.

• This simmering resentment grew with time, and one fine day things came to a head when the 2nd Engineer was instructed to carry out work on the STP which in his opinion was clearly too dangerous to attempt under the present conditions. The 2nd Engineer put his foot down, mindful that he stood to suffer professionally, as the Chief Engineer would doubtless cite this as a case of insubordination, and initiate disciplinary action.

• The Chief Engineer Mr X was in a bind his bluff had been called. He was aware of the risks associated with the job, but he had got the same job done earlier and felt that the level of risk could be tolerated. However, with the 2nd Engineer’s refusal to carry out the job, the Chief Engineer was faced with the prospect of escalating the matter to the Master, or agreeing with the 2nd Engineer’s assessment and deferring the task.

The latter would mean loss of face in front of the ER staff, something which the Chief Engineer Mr X would not be able to live with. On the other hand, if the Chief Engineer Mr X took the matter up to the Master, would it not reflect on his inability to control things within his department…… his ineffectiveness as a Leader?

Q.2a) Why do people work? Why do they work willingly and well? Examine these questions with various well-known theories of Motivation both in the eastern world and western world. [20 Marks]

b) What are the new theories of motivation that challenge old ways of thinking? [10 Marks]

Q.3Describe how organizations and individuals have changed their approach to employment in light of increasing competitiveness amid uncertainty in the Information & Technology business environment. Comment on how the relationship between employee and employer changed as a result such improved competitiveness. [30 Marks]

Q.4a) Definition and state the purpose of financial management? [5 Marks] b) What are the types of types of estimation processes used in financial management. Describe at least three of them with suitable examples? [15 Marks] c) Explain with specific examples a software development cycle for an Enterprise Resource Planning (ERP) system used in a ship management company? [10 Marks]

Q.5 a) You have been chosen to head a project of a large Multinational Ship Management for utilizing existing senior Indian Seafarers for lateral entry into positions ashore to manage autonomous vessels with no crew on board. Create a strategic plan taking into account various aspects of this transformation keeping a five year horizon to accomplish same? [30 Marks] Q.6 a) Enlist and explain with examples the various legal issues and challenges in human relation

i. Changing over nationality of seafarers on board an Indian flag vessel from Indian seafarers to seafarers from another nation.

ii. Employing women seafarers on board vessels both with respect Indian and international laws.

iii. Reduction of wages and compensation for seafarers due to market forces [30 Marks]

EM 102 15/10/2019

Q.1 XYZ Shipping Company had 133 new vessels (12.4m dwt) deliver into the dry bulk fleet and 27 ships scrapped(2.3m dwt), giving net fleet growth of 10.1m dwt, representing a 1.3% capacity expansion.

For 2019, the numbers on the additions side are almost identical, with 138 deliveries year-to-date representing 12.6m dwt. Scrapping however is running at more than double last year’s rate, having seen 5.1m dwt already scrapped or sold for demolition. That puts net fleet growth so far for 2019 at 7.5m dwt, which represents capacity expansion from the start of the year of less than 1%. With deliveries running slower than had been expected and scrapping rates high, the combined Capesize and Newcastlemax fleet is actually 1.8m dwt (0.7%) smaller than it was on January 1st. While superficially beneficial for the Cape sector demand/supply balance, the decline is more than offset by the expansion of the VLOC fleet, which despite the removal of 6 ships has seen net capacity growth so far in 2019 of 3.2%.

Included in the 11 new deliveries we have seen are six 400k dwt Valemaxes and two 325kdwt Guaibamaxes. There are another 18 VLOCs set to deliver through the remainder of the year as well.

Given that Chinese iron ore imports to the end of April were down 3% year-on-year and there are some obvious constraints on iron ore supply, it is no wonder the Cape market has proved challenging for owners in 2019 so far.

We do see more iron ore returning to the market from Brazil with the end of the rainy season and the Australian producers are back up to full speed after a poor first quarter, but with another 50 Capes and Newcastlemaxes set for delivery by year-end (not withstanding some slippage) it will take some additional scrapping to help achieve a balance.

On the smaller sizes the fastest fleet growth has come in the Kamsarmax sector, where capacity has grown by close to 5% this year. Indeed with the Panamax fleet shrinking slightly, total Kamsarmax carrying capacity is for the first time higher than the traditional Panamax fleet.

The geared fleet has grown by just over 1% so far this year. Most of the capacity additions have come in the Ultramax and Large Handy (38k dwt) sector where new buildings are almost exclusively focussed. There is almost nothing on order in the other size categories.

Beyond the balance of deliveries and ships scrapped, the other key supply side metric is what is being contracted and how the forward order book is changing.

At the start of the year we had just 67 vessels (9.3m dwt) in the book for delivery in 2021 and just 3 vessels slated for 2022 onwards. It has gone slightly under the radar, but these numbers have jumped in the last few months, with 140 ships (19m dwt) now set for 2021, a more than doubling of orders. Two-thirds of this capacity is in VLOCs and Newcastle axes. However, even with this growth in orders the bulker shipyards look severely underutilised for 2021. They are currently on course for their lowest output since 2003, with little time remaining to fill up the gap.

Question: Examine and analyse the above market scenario and explain segment wise which segment you would invest in as a ship-owner and why? [50 Marks]

Q.2. Adam Smith is quoted to have said ‘such therefore are the advantages of water transport that …this conveniency opens the whole world to the produce of every sort of labour’. Examine this statement and relate it to the role of Shipping in Indian Economic growth. [30 Marks]

Q.3. Explain ship size and economies of scale. How does Unit cost function influence the Shipping Financers decision to invest in Ships? Examine this statement based on the trends in the past decade? [30 Marks]

Q.4 The ship-owner trades in four different markets. Enlist and explain these markets. Examine the current trends of these markets. [30 Marks]

Q.5 Enlist and examine COSTS, REVENUE AND CASHFLOW for annual operation, Maintaining and financing a fleet of ships. [30 Marks]

Q.6 Prepare a monthly cash flow statement for ABC Co for the six months (say Jan 1 to 30 June and comment on your analysis. [30 Marks]

The cash balance on January 2019 is $5,000. Projected agency fees over the next 6 months are as follows:

January $29,000 April $19,000 February $25,000 May $27,000 March $26,000 June $31,000

Fees in November and December were $24,000 and $19,000 respectively. Aged debtors analysis shows that 50% pay in the same months, 30% one month later and 20% two months later. Purchases on credit are paid for in the month following the purchase and are expected to be:

January $15,000 April $12,000 February $24,000 May $35,000 March $38,000 June $21,000

December credit purchases were $800. Rent, rates and insurance of $8,000 p.a. are paid quarterly in advance starting on January 1st. Telephone expenses are likely to be $320 for the first quarter and $460 for the second and are settled in arrears by one month, Fixed costs of $600 per month include $300 per month depreciation. Interest on bank overdraft is paid at 10% p.a. monthly and interest on surplus funds over $10,000 is invested month by month earning 1% per month.

EM 103 16/10/2019 Q.1. You are an Indian national. You are the Master of a vessel flying the Flag of a country “X”. whose legal system is based on the Common Law system. The officers and crew members on the vessel are of mixed nationality. Hence, the legal systems of the nationality of the individual crew members are varied. At around 0900hrs LT, while the vessel is on the high seas and you are on your routine rounds to the bridge, the 3rd officer of the vessel (‘Y’ nationality following the Civil Law system) attacks you with a knife and stabs you several times on the chest. You are evacuated by helicopter to the nearest island (Country ‘Z’ following Civil law system) and undergo emergency surgery to save your life. The vessel thereafter diverts to a nearby port (Country * P-following the Conmmon Law system) where the 3rd Officer is handed over to the police at the port. Discuss the following a What are the major legal systems of the world? What are the salient aspects of the different 7 legal systems? [20 marks] bThe criminal jurisdictions of the States where this crime can be tried along with the reasons for the same [15marks] c.Explain the international instruments that could be applicable in this matter along with reasons and the actions you can take to enforce them. [15marks] Q.2a) Describe the distinguishing features of federal and unitary constitutions. Which of the two types has India adopted? [15marks] b) What are the advantages and disadvantages of a Parliamentary constitution vis-à-vis a Presidential constitution? [15marks] Q.3 Explain the salient features of the Vienna Convention on the Law of Treaties 1969. Discuss the concept of ‘Reservations and the legal effect of reservations and objections to reservations with few examples. [30 marks] Q4. al Discuss the essentials of a contract of Indemnity with examples from shipping. Distinguish between Indemnity and Guarantee. [15marks] b) Define the term Agency. Explain the rights and duties of a Lagent under the Indian Contract Act. When is an agent personally liable for the contracts made by him on behalf his principal? [15marks]

EM 101 09/08/2021 Q.1 You are the Head of Fleet Personnel in a company. You are required to investigate a ‘Case Report and submit a report to your Board of Directors based on the given data and information along with your findings, clarifications (if any), and corrective action suggested including plan of action. [50 Marks] Case Report: All the management level officers on board one of your ships have attended detailed programs on leadership distinguishing all aspects of leadership including transactional, instrumental and transformational leadership. Mr ‘Y’ joined the ship as a 2nd Engineer. After joining the vessel, he soon realized that the Chief Engineer (Mr ‘X’) on the vessel had a firm grip on the running of the engine room, which left little room for him to exercise his own authority. Once the initial ‘familiarization’ period was over, the constant ‘interference’ by the Chief Engineer in day-to-day matters was becoming irksome to Mr Y. While the junior Engine room staff had got used to ’toeing-the-line’, Mr ‘Y’ felt restricted in his ability to perform under the constant supervision of the Chief Engineer. Any work-related suggestions from Mr Y to the Chief Engineer were met with the refrain “Just do it the way I am telling you”. For the first time in his twenty-odd years of sailing, the Chief Engineer felt that he was at a disadvantage…. not being sure as to how to proceed as in an unexpected burst of aggressiveness, his 2nd Engineer had declined outright to carry out the task assigned to him that day a routine inspection and maintenance work on the Ship’s Sewage Treatment Plant (STP). The Chief Engineer Mr X hailed from a family of intellectuals, and was himself a very bright student, with a natural flair for engineering. His up-bringing was in a conservative traditionalist environment, replete with exposure to religious learning, prayer and devotion to the family deities. He was proud of his faith, and started each day with the reciting of verses from the scriptures, in obeisance to the almighty.

• Professionally, the Chief Engineer Mr. X had done well for himself. He distinguished himself academically in the Marine Engineering College from where he graduated, and was fortunate to serve under benevolent senior engineers, who very generously shared their skill and experience. As the years passed, Mr X developed into a skilled Marine Engineer himself, and rapidly moved along the career path to become Chief Engineer at the age of 32 years. 1 • The shore management of the company was very pleased with Mr X’s performance as Chief Engineer, that when a temporary position of Marine Superintendent opened up in the shore office, Mr X was invited to fill in. After about 18 months of shore experience as Superintendent, Mr X returned to active sailing on board as Chief Engineer on the same ship which he was superintending earlier. As a result of his professional pride and his eye for detail, Mr X’s style of functioning was very ‘hands-on’. He was involved in every aspect of the machinery operations and maintenance, making all decisions himself and ensuring that the jobs were done to perfection. His departmental staff, though very respectful, was also rather over-dependent on him for handling of day-to-day matters. His dominant personality had an influence on the rest of the ship’s crew to the extent that the Master and Chief Officer felt insecure at times when interacting with him. Blissfully unaware of all this, Mr X was confident of his abilities and felt that he was well in control of things on board. That was till 2nd Engineer Mr Y joined the ship.

• Mr Y was a relatively senior 2nd Engineer, also very capable and committed to excellence. He had performed well on previous assignments and was being considered for promotion. Being on this particular ship for the first time, he was keen to pick up the ropes quickly and gain confidence in handling his responsibilities.

This simmering resentment grew with time, and one fine day things came to a head when the 2nd Engineer was instructed to carry out work on the STP which in his opinion was clearly too dangerous to attempt under the present conditions. The 2nd Engineer put his foot down, mindful that he stood to suffer professionally, as the Chief Engineer would doubtless cite this as a case of insubordination, and initiate disciplinary action. The Chief Engineer Mr X was in a bind - his bluff had been called. He was aware of the risks associated with the job, but he had got the same job done earlier and felt that the level of risk could be tolerated. However, with the 2nd Engineer’s refusal to carry out the job, the Chief Engineer was faced with the prospect of escalating the matter to the Master, or agreeing with the 2nd Engineer’s assessment and deferring the task.

The latter would mean loss of face in front of the ER staff, something which the Chief Engineer Mr X would not be able to live with. On the other hand, if the Chief Engineer Mr X took the matter up to the Master, would it not reflect on his inability to control things within his department.. his ineffectiveness as a Leader

Q.2a) Why do people work? Why do they work willingly and well? Examine these questions with various well known theories of Motivation both in the Eastern World and western world. [20 marks] b) What are the new theories of motivation that challenge old ways of thinking. [10 marks] Q.3 Describe how organizations and individuals have changed their approach to employment in light of increasing competitiveness amid uncertainty in the Information & Technology business environment. Comment on how the relationship between employee and employer changed as a result such improved competitiveness. [30 Marks] b. What three ways are there to protect yourself against wide currency fluctuations? What special advantage is there in buying a foreign currency option? [30 Marks] Q6. Technology can change the world, and it has brought a ‘sea’-change to the shipping industry as well. Share your thoughts on how the following technological advances are likely to have an impact on the future of shipping. Share examples where relevant. (a) Augmented reality and Robotics. [10 marks] (b) Smart Ships, with no human onboard. [10 marks] (c) Deep sea tunnels and hyper-loop travel/transportation. [10 marks]

EM 102 10/08/21 1.Q. Case Study: President Biden made it clear throughout his election campaign that he planned to re-engage with Iran, Iran and the US took the first public steps to re-engage with each other. Nevertheless, the “talks” were said to be constructive with further “discussions” scheduled to take place on the 9th of April. Tanker supply still looks benign despite a recent flurry of VLCC orders.2023 delivery is said to be closed for VLCCs after an ordering spree of 15,000-teu and larger boxships which compete for the same dock space. In absolute terms, on an annualised basis, the total tanker order book of 54.26m-dwt in 2020 was last lower than this in 2001, when it was at 50.92m-dwt.The 2020 OB/FL ratio for all tankers fell to an historic low of just 8.7% which bodes well as oil demand recovers and returns to trend growth. Despite tanker scrap prices of $460+, tanker demolition has been disappointing. A pick-up in March saw 10 21 tanker scrapping come in at 29/1.98 m-dwt after 17/2.00m-dwt in 4Q 20.In the previous three quarters of 2020 only 32/1.70m-dwt was dispatched. The ISC scrap yards are being hampered by Covid lockdowns while also being outbid by shady buyers in sunny places. Large crude tankers are being bought for further trading, to be deployed in subterfuge trades involving Iranian and Venezuelan oil. US rapprochement with Iran may lead to the NITC fleet becoming more visibly active but, in reality, it is already fully employed in storage and discreet deliveries to Asian buyers. If Biden does a deal then the subterfuge trades will die and those tankers will head for the beaches. Questions: Why are sanction of the US against Iran a game changer? A. Why does the scrapping of tankers hinging on the trade relations between US and Iran? B. What will be impact of the NITC fleet coming to the water? C. Why is there an extensive order of large box ships and why does this have an impact on the VLCC orders? [50 Marks]

.2 Analyse the given case study and state if there is an improvement or deterioration in the firm’s financials. Sr. No Ratio Explanation

Last Year

Current Year

Analysis

1 EBITDA Margins EBITDA Sales 19% 17%

2 Net Profit Margins

Net Profits Sales

7% 6%

3 Solvency Debt 2% 2.5%

Equity 1% 1%

4 Interest Service Coverage Ratio EBIT 5.2% 4.5%

Interest 1% 1%

5 Inventory Turnover Ratio Sales 2.5% 1.5%

Inventory 1% 1%

6 Receivable Turnover Ratio Sales 2.8% 1.9%

Receivables 1% 1%

7 Return on Investment Profits 10% 5%

Investment

Q.3 (a) What do you understand by Break Even Analysis? Where can you apply in Shipping business, the tool of Break Even Point? [15 marks] (b) A product is sold at a price of Rs.120 per unit and its variable cost is Rs.80 per unit. The fixed expenses of the business are Rs. 8000 per year. Find the following: (i) Break Even Point in Rs. and in Units. [5 marks] (ii) Profit made when sales are at 240 Units. [5 marks] (iii) Sales value required to earn a profit of Rs. 5000 per year. [5 marks] Q.4 You are assigned as Project manager for developing about 40 Hectares of Land along th Coast of India, which will include a ROPAX Jetty, You are to identify all possible Purpose and functions and Controls to be put in place that thi land can be used for and submit an initial EOI for submitting project report to the Stat government. Justify each function and the likely Socio Economic Benefit. Yiu can make and state your ow assumptions. [30 Mark] Q.5. a. Why is the time value of money an important concept in capital project evaluatior Explain with appropriate examples Q.4 Write short notes on any three of the following (150 words each): a) What are the different managerial skills, related to the major managerial functions? b) Define: Perception; Personality; Attitude; Group think; Brainstorming c) Comment on the Hofstede’s Cultural Dimensions as applied in the Indian environment. d) Unity in Diversity with respect to a maritime organisation. e) Application of the JoHari Window with examples. [30 Marks] Q.5 What factors and activities contribute to success in entrepreneurship? With the example of a successful venture you may have come across, analyse the issues related to entrepreneurship. [30 Marks] Q.6.a) Describe the different types of Strategies that can be applied in an Organization. Propose a suitable time horizon for each type of Strategy. [15 Marks] b) Explain, with examples, the difference between a Strategic and a Tactical decision. [10 Marks] c) What is the meaning of the term ‘Value Chain’? Cite with at least two examples. [5 Marks]

EM 103 11/08/2021 Q1. Two ships collide near Gibraltar Straits within the territorial sea of Spain. Vessel A is overtaking vessel B in clear weather conditions, both being in the correct TSS lane. A third ship C coming in the opposite direction, in the wrong lane is warned by Spanish VTS and at the last minute, alters course to starboard into separation zone and then resumes course in the correct lane. B, fearing collision with C before C goes to starboard, alters course to starboard and collides with A. A sinks. There is pollution due to oil cargo from A. Answer the following: a. In the apportionment of blame, can any blame be placed on vessel C which did not collide at all. Explain with reference to appropriate int. convention. b. Spain wanted to start the inquiry and proceedings against the vessel C (flag state Liberia) and arrest vessel C for negligent navigation and proceed to suspend master’s COC. Liberia says they have the right of this investigation. Comment on this with justification. c. Make an apportionment of blame for all three or two vessels in percentage in your opinion giving reasoning from conventions. d. Who will compensate for oil pollution damage and subsequent to application of which convention. [50 marks] Q.2 Write short notes on the following terms of shipping contracts giving examples- a. Express, b. Implied, c. Conditions, d. Warranties, e. Innominate. [30 Marks] Q.3 What is maritime fraud? Give at least four examples of maritime frauds and discuss how these may be minimised. Describe the services provided by the International Maritime Bureau to protect the integrity of international maritime trade. [30 Marks] Q.4 a) what is a contract of indemnity? b) who is an indemnifier and indemnity holder and also give their duties? c) Define Tort, how does it differ from a contact? Give examples in the maritime context when tortuous liability can be invoked. d) What differentiates international torts from non-international torts? [30 Marks] Q.5 Under a voyage charters the vessel was to be discharged in four days. However, after the fourth day, she had discharged only 30% of her cargo. On the 5th day the stevedores went on strike which continued for 10 days. Consequently, the vessel incurred considerable demurrage. The charterer says he is not liable to demurrage for the period of the strike as this was beyond his control, Discuss the merits of the charterer’s contention. [30 Marks] Q.6 Describe the silent features of UNCLOS, 1982. [30 Marks]

EM 101 3/6/24 Q.1 Read the Case Study Below. All Your Management Level Officers on Board have earlier attended Programs on distinguishing and application of Transactional Instrumental and Transformational Leadership. As the Head of Fleet Personnel, you are required to investigate the Report, and with the given data and information, submit a report to your Board of Directors with your Findings, Clarifications if any, Corrective action suggested and plan of action Ganesan’s Folly However, Chawla soon realized that the Chief Engr had a firm grip on the running of the Engine room, which left little room for him to exercise his own authority. Once the initial familiarization period was over the constant ‘interference’ by the Chief in day-to-day matters was becoming irksome to Chawia. While the junior ER staff had got used to toeing the line, Chawla felt restricted in his ability to perform under the constant Superion of the Chief. Any work-related suggestions from Chawla were met with the refrain Just do it the way l am telling you" For the first times twenty-odd years of sailing, Chief Engr. Ganesan felt that he was at a disadvantage net being sure as to how to proceed. In a unexpected burst of aggressiveness, hi 2 Engr Chawla had declined outright to carry out the ask assigned to him that daya routine inspection and maintenance work on the Ship’s Sewage Treatment Plant (STP) Ganesan hailed from a family of intellectuals, and was himself a very bright student, with a natural flair for engineering His up-bringing was in a conservative traditionalist environment, replete with exposure to religious learnings, prayer and devotion to the family deities. He was proud of his faith, and started each day with the reciting of verses from the scriptures, in obeisance to the almighty. Professionally, Ganesan had done well for himself. He distinguished himself academically in the Marine Engineering College from where he graduated, and was fortunate to serve under benevolent senior engineers, who very generously shared their skill and experience. As the years passed, Ganesan developed into a skilled Marine Engineer himself, and rapidly moved along the career path to become Chief Engineer at the age of 32 years. The shore management of the Company was so pleased with Ganesan’s performance as Chief, that when a temporary position of Marine Superintendent opened up in the shore office, Ganesan was invited to fill in. After about 18 months of shore experience as Superintendent, he returned to active sailing on board as Ch. Engr. On the same ship which he was superintending. As a result of his professional pride and his eye for detail, Ganesan’s style of functioning was very hands-on’. He was involved in every aspect of the Machinery operations and maintenance, making all decisions himself and ensuring that the jobs were done to perfection. His departmental staff, though very respectful, were also rather over-dependent on him for handling of day-to-day matters. His dominant personality had an Influence on the rest of the ship’s crew to the extent that the Master and Chief Officer felt insecure at times when Interacting with him. Blissfully unaware of all this, Ganesan was confident of his abilities and felt that he was well in control of things on board. That was till 2nd Engr Chawla joined the Ship. Chawla was a relatively senior 2nd Engr., also very capable and committed to excellence He had performed well on previous assignments and was being considered for promotion. Being on this particular ship for the first time, he was keen to pick up the ropes quickly and gain confidence in handling his responsibilities. This simmering resentment grew with time, and one fine day things came to a head when Chawla was instructed to carry out work on the STP which in his opinion was clearly too dangerous to attempt under the present conditions. Chawla put his foot down, mindful that he stood to suffer professionally, as the Chief Engr would doubtless cite this as a case as insubordination, and initiate disciplinary action. Ganesan was in a bind his bluff had been called. He was aware of the risks associated with the job, but he had got the same job done earlier, and felt that the level of risk could be tolerated. However, with the 2nd Engr’s refusal for carry out the job, Ganesan was faced with the prospect of escalating the matter to the Master, or agreeing with the 2nd Engr’s assessment and deferring the task. The latter would mean loss of face in front of the ER staff, something which Ganesan would not be able to live with. On the other hand, if Ganesan took the matter up to the Master, would it not reflect on his inability to control things within his department……. his Ineffectiveness as a Leader?

Q.2.You are the newly appointed Marketing Manager of a privately operated Container Terminal in an up-coming Port on the North-west Coast of India. The Port has two other Container Terminal, operated by other private parties. (All the three terminals are leased out to the operators on revenue share basis) The Port is connected to the hinterland by rail and road, Capacity of rail and road is limited but capacity expansion projects are already underway (Doubling railway lines and road 4-laning). Your terminal has secured additional yardage space near the Port. The terminal has three high-capacity Rail-mounted Port-Panamax Gantry Cranes on the dockside, and sufficient RTG’s and forklifts for Yard handling of Containers. The Operators are planning to install rail lines on the terminal to provide direct access to rail wagons from the main line. While your Terminal has one large Container Line as a captive client (5-year contract), there are many other mainline and feeder services who are potential clients, some of whom are being served by competing terminals. Draw up a 5-year Marketing Strategy for your Terminal so as to achieve the business growth targets set by the terminal operators. Q.3. Indian stake holders intend to capitalize on the manpower required to operate Autonomous ships word wide. Create a strategic and tactical plan for 5 Years in Create pertaining to development and positioning of Indian Masters and Chief Engineers and suitable manpower to man these projects. Q.4. Write short notes on any three of the following (150 words each): a) What are the different managerial skills, related to the major managerial functions? b) Define: Perception; Personality; Attitude; Group think; Brainstorming (c)Comment on the Hofstede’s Cultural Dimensions as applied in the Indian environment. (d)Unity in Diversity with respect to a maritime organisation (e) Application of the JoHari Window with examples Q.5. how does the Conflict Management Process applied for organizational effectiveness? Explain through a schematic representation. Q.6.what is meant by Group Dynamics? Relate the idea to the on-board dynamics in a cruise ship. 7. Does the Organizational Structure impact organizational performance? What structure would a large e-commerce venture adopt? EM 102 4/6/24 Q1. Read the case study or d’ answer the questions Ching’s seaterse teen ore-buports last your accoumed for over 70% of global imperis 1,047mt out of 1,476mt. But the 2018 import total was 1% down on 2017, the first year on-year decline since 2010, when the country’s imparts fell 1.5% to 619mt from 628 min 2009 The latest Dry Bulk Trades qutlook forecasts for the country indicates flat import thi sear of 1,048nt, down 1.5% from its early January estimate of 1.064mt. The tom shortfall represents a combination of lower available iron ore supply and weaker in ore import demand. The situation in the said country is that steel prices have fallen, while raw material input cats have tisen, leading to an untenable squeeze on sizel mill margins. in In January/February this year, the country imported 174.4mt of iron ore, down 5.5% on the 184.6mt that it imported in the same period last year. There is the distortional impact of the lunar new-year holidays, when steel mills and traders shut down for up to tow weeks. and the impact of rising iron ore prices as availability shrank in 1st quarter. 62% Fe, CPR China iron ore prices rose 24% from $74.6pmt on 25 January to $92.3pm on 7 February. They then dipped to a low of $84.5pmt on 11 March before recovering to, $92.2pmt yesterday. Prices averaged under $70 a tonne in 2018. When prices rise. buyers in that country buy less, draw down their port and other stocks. switch to lower grade imports, and use inferior quality and cheaper domestic supplies. Some blast furnace output is replaced by electric are furnaces that use steel serap as feedstock. The end result is lower iron ore demand, and higher imports from nearby country at the expense of long-haul imports: a tonne-mile loss. This is disastrous cocktail for capesize bulk carriers. Through the fog of distorting factors, it is hard to assess what is temporary and what is structural. Import tariffs raise prices for households and reduce discretionary spending The countries slower economic growth. 6.6% last year and possibly 6.3% this year, are the lowest rates of GDP growth in the last 30 years. The country is transitioning to lesser levels of industrial and manufacturing intensity as it tackles pollution, outsources functions to Southeast Asia and reduces over-capacity as it rolls out and supports its Belt and Road Initiative. In industrial terms. it is a progressive switch from heavy industry to light industry as services grow. Capes and other bulk carriers were expected to benefit from a supply-led rather than a demand-led recopury this year. We anticipated low levels of tonnage supply and robest demand andels, but Q’s events roquire the forecasts to he adjusted down a bit, Assunt, we have witnessed mass panic as a series of what should be temporary events have hijackad sentlicht and confidence. This quickly depresses freight rates, santings and values, Questions to answer

1. What will be the impact of Baltic assessments on Styear old 180,000-dwt cape?
2. What will be the, impact spot earnings over the same period?
3. Who would benefit from the change in fron ore demand?
4. What will be the impact of the unresolved US-China trade wars and its impact on Chinese densand for stuff including, for example, cars? [50 Marks] 2.Q. Adam Smith that, is quoted to have said such therefore are the advantages of water transport that this conveniency opens the whole world to the produce of every sort of labour statement and relate it to the role of Shipping in Indian Economic growth. [30 Marks] Q3 A From the following data calculate: i)PN Ratio ii)Break-even point in units iii)Break-even point in soles iv)Profit when sales are Rs. 10 lakhs v)Sales to earn a profit of Rs. 10 lakhs. Sales (5000 Units) Rs. 6,00.000 Less variable cost 200000 Fixed Cost 300000 Profit 100000

B Explain these terms with suitable examples, when used in capital budgeting DCTE WACC NPV and IRR.[30 Marks] Q.4 The ship-owner trades in four different markets. Enlist and explain these markets. Examine the current trends of these markets. [30 Marks]

0.5 The free cash flow of a shipping can be used either for paying of taxes, or reinvestment Into the assets of the company, or to distribute dividends/profits among the shareholders. But how does one arrive at the free cash flows of a shipping company? (a) What are the three significant factors which determine whether a ship owner can subsist in the shipping market or not? [10 marks | (b) Elaborate, with examples where possible, Into the different elements that make up these three factors [10 marks) (c) Create a hypothetical example to show the workings of the positive cash flows of a Shipping Company [10 marks] Q6. International waters and trade/shipping have drastically changed over time. Give your view on this matter, especially with regards to: (a) Different nation’s contribution, or lack thereof, towards the growth of the shipping industry Specific nation examples are welcome. [10 marks] (b) Indian Government attitude and support/lack towards the same cause. [ 10 marks] (c) Your view on the measures that should be taken to support the Shipping industry globally. [10 marks] EM 103 5/6/24 Q.1.a) Mr ‘P’ was working as chief officer on a Panama registered merchant ship. He was the only member of the crew on that ship with Indian nationality. As the Chief Officer of the ship, he had to direct the crew for various jobs on board and often had arguments with them. Mr ‘P’ was reported missing from the ship when she was in international waters. After Mr ‘P’s disappearance, the ship called at Singapore and Colombo but the Master reported that he had no reason to suspect foul play and that Mr ‘P’ went missing at sea. Thereafter the vessel called at Mumbai. Mr ‘P’s father then filed a report with the police stating that he has reason to believe his son was murdered and calling upon the Mumbai police to investigate the crime. Mr P’s father produced letters and emails received from Mr P showing that there was constant friction between him and some of the crew members who had threatened to kill him and that Mr ‘P’ was fearful about his life. The ship-owner says that since the alleged crime did not take place in Indian Territory, the Indian authorities have no jurisdiction to investigate the allegations made by Mr P’s father. Discuss the merits and demerits of the ship-owner’s contention. [30 marks] b) What is crime and what are its essential elements? What are the principles on which extra territorial criminal jurisdiction is founded? Explain with examples. [10 marks] c) “There is a general presumption that mens rea’ is an essential ingredient of a statutory offence, but this presumption may be displaced by words in the statute, or even by the subject matter of the statute.” Explain this statement and discuss the relevance of mens rea in strict liability offences. [10 marks] Q.2 The general cargo vessel ‘M’ loaded steel coils in Marseilles. The loading process was spread over several days and for some time during this period. there was a strike by the tally clerks, but loading of steel coils was not interrupted. On completion of loading, the Shipper informed the Master that 15,000 coils of steel, each weighing 2 tons had been loaded on board. The Master issued a clean Bill of Lading for 15,000 coils stating “Shipper’s load. stow and count: 15000 coils, said to weigh 2 tons each”. The “Bill of Lading incorporated the Hague Visby Rules. The shipper endorsed the bill of lading to “P” the purchaser of the steel coils who paid the full price of 15,000 steel coils and to whom the property in the steel coils was transferred. At Mumbai the designated port of discharge, only 14,900 steel coils were found on board and were delivered to “P”. “P” sued the owners and the Master of the vessel ‘M’ for short-delivery of 100 steel coils. The Commissioner of Customs at Mumbai issued a ‘show-cause” notice to the Master and Owners calling upon them to explain why a penalty should not be imposed on them under the provisions of Section 116 (PENALTY FOR NOT ACCOUNTING FOR GOODS] of the Customs Act. 1962. Discuss with reasons the following: a) P’ was not a party to the contract of carriage, which was made between the shipper and ship-owner hence. “P” had no privity to sue the ship-owner/carrier. b) Because of the tally clerks strike at the load-port, there was a mistake in tallying the steel coils and that whatever was loaded and found on board had been delivered. The number of coils mentioned in the bill of lading was as per the shipper’s count. Hence there was no short-delivery to “P” c) In reply to this show cause notice issued by the Customs, the ship-owners produced records of the strike by the tally clerks as the reason for the mistake in counting and further pleaded that the quantity mentioned in the ship’s manifest was as per the shipper’s count. Is this a valid defence to avoid penalty under the Customs Act? [30 Marks] Q3 Explain the salient features of the Vienna Convention on the Law of Treaties 1969. Discuss the concept of ‘Reservations and the legal effect of reservations and objections to reservations with few examples, [30 marks] Q.4.a) What is a contract of bailment and what are its essential features? What are the duties of a bailor and a bailee? Can a contract of affreightment be a contract of bailment? Give supporting reasons and state examples. [18 marks] b) What is tort? Give examples of tort from shipping. How does international tort differ from non-international tort? [12 marks] Q.5 Write Short Notes on the following: a) what is a pledge and how is it different from bailment? b) Enumerate duties of a pawnor and a pawnee? c) Under what circumstances can an unpaid pawnée sell the goods pledged to him? [30 Marks] Q.6 Identify and describe the offence committed, the governing jurisdiction and provisions applicable in each of the following. – [30 Marks]

1. An Indian seafarer was employed onboard a vessel registered in India as able seaman. During the ship’s voyage to Singapore, the seafarer committed suicide. He left a note, stating that he was committing suicide due to financial difficulties faced by his family. He pointed out that the service conditions on board the vessel were fine. The family made a claim upon the employer for death of the seafarer during the course of employment.

2. A vessel registered in India with Indian crew on board was passing through the Malacca Strait, when it was pursued by persons bearing firearms, calling upon the crew to hand over control of the vessel to them. One seafarer on board the vessel used a firearm to quel the attack and one of the attackers died. The Malaysian Coast Guard intercepted the vessel shortly thereafter and took into custody all the seafarers on board the vessel. Subsequently, the seafarer who had shot the firearm was charged for murder of a “fisherman” and sought to be tried in the Malaysian courts. The Indian government argued that the attackers were pirates and not fisherman, and that any trial against Indian seafarers, if at all, must be conducted in India alone.