WEEK 1

NATURE AND SCOPE OF MANAGEMENT

Management is getting things done through people. It is the process of achieving
organizational goals by engaging in the four major functions of planning & decision-
making, organizing & staffing, directing/leading, and controlling. Identifying a
“force” group of people whose job is to direct the effort and activities of other
people towards a common organizational objective. The performance of conceiving
and achieving desired results by means of group effort consisting of utilizing
resources, that will determine the success and failure of an organization.

ENGINEERING MANAGEMENT
Engineering Management is the process of designing and maintaining an
engineering environment in which individuals working together in groups,
efficiently accomplish organizational goals/objectives.
- Management applies to any kind of organization.
- It applies to all managers at all organizational levels.
- Managing is concerned with productivity, which
- Implies effectiveness and efficiency.

OBJECTIVES OF MANAGEMENT
The main objective of management is to secure maximum outputs with minimum
efforts & Getting Maximum Results with Minimum Efforts
- resources. Management is basically concerned with thinking & utilizing
human, material & financial resources in such a manner that would result in
best combination. This combination results in reduction of various costs.
Increasing the Efficiency of factors of Production
- Through proper utilization of various factors of production, their efficiency
can be increased to a great extent which can be obtained by reducing
spoilage, wastages and breakage of all kinds, this in turn leads to saving of
time, effort and money which is essential for the growth & prosperity of the
enterprise.
Maximum Prosperity for Employer & Employees
- Management ensures smooth and coordinated functioning of the enterprise.
This in turn helps in providing maximum benefits to the employee in the
shape of good working condition, suitable wage system, incentive plans on
the one hand and higher profits to the employer on the other hand.
Human betterment & Social Justice
- Management serves as a tool for the upliftment as well as betterment of the
society. Through increased productivity & employment, management
ensures better standards of living for the society. It provides justice through
its uniform policies.

FUNCTIONS OF MANAGEMENT
Planning & Decision-Making
- Involves selecting goals and objectives, as well as the actions to achieve
them; it requires decision-making, that is choosing the “best” from among
alternatives.
Organizing
- Involves establishing an intentional structure of roles for people to fill in an
organization.
- The process of allocating and arranging human and non-human resources so
that plans can be carried out successfully.
Staffing
- Involves filling, and keeping filled, the positions in the organization structure.
- Process by which managers select, train, promotes, and retires subordinate.
Directing/Leading
- Influencing people so that they will contribute to organizational and group
goals.
Controlling
- Measuring and correcting individual and organizational performance to
ensure that events conform to plans.
- Facilitates the accomplishment of plans.
- The process of regulating organizational activities so that actual performance
conforms to expected organizational standards.

WEEK 2
DEFINITION OF SMALL-SCALE INDUSTRIES
Small Scale industries, as the name suggests are the industries wherein the
production process is undertaken at a small or say micro level.

STRUCTURE OF SMALL-SCALE INDUSTRY

• Often set up by private individuals, usually with the help and support of their
family members and hiring local workers who understand the work.
• Uses simple machinery, tools and equipment, less manpower. However, it
depends on the production scale.
• Provide subsidiary employment to rural people.
• It mobilizes as well as uses the hidden and untapped resources of the
country. In addition to this, it encourages indigenization.

DEFINITION MEDIUM-SCALE INDUSTRIES

A medium scale business is often the awkward middle child of its industry – too
large to get the discounts and services afforded to small businesses and too small
to have the weight and prestige granted to large enterprises .

STRUCTURE OF MEDIUM-SCALE INDUSTRY

• Medium-scale industries contribute significantly to manufacturing output,

employment, and exports of a country.
• It is estimated that in terms of value, the sector contributes 45% of
manufacturing production and 40% of total exports of a country
DEFINITION OF LARGE-SCALE INDUSTRIES
Large scale industry refers to undertakings which have a vast infrastructure, and
employee base along with heavy power-driven machinery and huge capital
investment. To manage and operate these industries effectively, complex
management is required.

STRUCTURE OF LARGE-SCALE INDUSTRY

Embraces both manufacturing concerns and others that make use of both
indigenous and imported technology to manufacture the products, so as to cater
the domestic as well as international markets.

In these industries division of labor and specialization principles are followed, with
the aim of improving productivity. Further, modern capital assets are used for
manufacturing goods to reduce cost. These industries get the benefit of economies
of scale due to the high volume of output.

Large scale industries are the backbone of the economy, as they facilitate in the
production of those consumer goods and capital goods which are imported from
abroad, which encourages self-reliance. Further, they provide employment to a
large number of people belonging to different areas. In addition to this, exports are
promoted which increases the country’s revenue.

FUNCTIONS OF VARIOUS DEPARTMENTS IN AN INDUSTRY

Production Department

• Responsible for converting inputs into outputs through the stages of

production processes.

• Responsible for production and planning by setting the standards and targets
at each stage of the production process. The quantity and quality of products
coming off a production line will be closely monitored.
• Responsible for the provision of the materials, components and equipment
required. An essential part of this responsibility is to ensure that stocks arrive
on time and are of good quality.
 • Responsible for stocking all the necessary tools, raw materials and
equipment required to service the manufacturing process.
• Responsible for the design and testing of new product processes and product
types, together with the development of prototypes through to the final
product.

THE WORKS DEPARTMENT

• This department is concerned with the manufacture of products. This will

include the maintenance of the production line and other necessary repairs.
The works department may also have responsibility for quality control and
inspection.

HUMAN RESOURCE DEPARTMENT

• The role of Human resource department is in charge of recruiting, training,

and the dismissal of employees in an organization.

MARKETING DEPARTMENT

• These are responsible for the sales and distribution of the products to the
different regions.
• They are also responsible for research and testing of new products to make
sure that they are suitable to be sold.

FINANCE DEPARTMENT

• Responsible for Keeping records of the purchases and sales made by a

business as well as capital spending.
• Preparing Final Accounts.
• Management of wages
• Raising finance
DECISION PROCESS AND COMMUNICATION IN AN ORGANIZATION
When a decision needs to be made, the responsibility naturally falls to the leader
in charge. A sound decision can’t be made in isolation. So therefore,

1. TURN TO TRUSTED CONFIDANT

It’s natural to turn to trusted confidants. You have to calculate how critical
confidentiality is with regards to the matter at hand, but be sure to include people
that may have information on the ground floor of the company and can be trusted
as well.

2. CONSIDER COMMUNICATING WITH IMPACT

When you discuss potential factors associated with a decision, begin by creating an
action-oriented team. Once you’ve identified the go-to experts in your
organization, assemble and discuss the decision that needs to be made. Assign each
member a role and then reconvene for a strategy session. Outline the pros and cons
of possible resolutions, then create a timeline for action.

3. BE CAREFUL OF INFORMATION OVERLOAD

Believe it or not, it’s possible to have too much information. If you’re inundated
with opinions, you may feel paralyzed. Weigh what you need and be ready to act.

4. DO NOT ACT TOO QUICKLY

Your first instinct might be to make a swift decision, but acting in haste may work
against your ability to make a sound choice. Take your time to consider your
options and the implications of your decision.

What are 5 Good Communication Skill?

• Collaboration: Involve your team in the work and the decision-

making process.
• Public speaking: Be ready to speak clearly about decisions and their
impact on the organization.
 • Listening: Engage in active listening and send a signal to your
employees that all perspectives matter.
• Nonverbal Communication: Be aware of your body language and how it
conveys a positive or negative reaction to the ideas shared by your staff.
• Written communication: Be clear and concise in your written
communication. This includes emails, memos and other letters to internal
and external constituents.

STRUCTURE OF SHIPBOARD MANAGEMENT – DECK, ENGINE &

CATERING DEPARTMENT
For the purpose of ship operation and traditionally, the crew of a commercial ship
is divided into three departments:

• Deck department
• Engine department
• Catering (steward’s) department.

The Captain or Master is the ship’s highest responsible officer, acting on behalf of
the ship’s owner/operator or manager. The Captain/Master is legally responsible
for the day-to-day management of the ship. It is his/her responsibility to ensure
that all the departments perform legally to the ship’s the owner /operator or
manager’s requirements
DECK DEPARTMENT
Chief Officer: The Chief Officer, also called Chief Mate or First Mate, is the head of
the deck department. He is second-in-command after the ship’s master.

• The Chief Officer’s primary responsibilities are the vessel’s cargo operations,
stability, and supervising the deck crew.
• The Chief Officer is responsible for the safety and security of the ship, as well
as the welfare of the crew on board.
• The Chief Officer typically stands the 4-8 hours of a navigation watch.
• Additional duties include ensuring good maintenance of the ship’s hull,
cargo gears, accommodations, the lifesaving and firefighting appliances.
• The Chief Officer also trains the crew and cadets on various aspects like
safety, firefighting, search and rescue and various other contingencies.

Second Officer: The Second Officer, also called Second Mate, is usually in charge of
ship navigation with a position below Chief Officer and above Third Officer. He/she
is the third-in-command, after the Master and Chief Officer.

• The second officer typically stands to watch from 1200 to 1600 at noon and
again from 0000 to 0400 in the nights.

Third Officer: The third officer also called 3rd Mate primarily charged with the safety
of the ship and crew. The Third officer generally serves as the ship’s chief safety
officer. The Third Officer is the next licensed position on board the vessel, as fourth-
in-command.

ENGINE DEPARTMENT
The engineers on board ships are also called technical officers. They are responsible
for keeping the machinery maintained and operational. Today, ships are complex
systems that combine a lot of technology within a small space. This includes not
only the engines and the propulsion system but also, for example, the electrical
power supply, devices for loading and discharging, garbage incineration, and
freshwater generators. Additionally, more and more environmental protection
technologies, fuel treatment systems, and cargo conditioning devices are used
onboard ships. The upkeep of all these are in the hands of engine department staff.
Chief Engineer: The Chief Engineer on a commercial vessel is the official title of
someone qualified to manage and oversee the engine department. The
qualification for this position is colloquially called a “chief’s ticket.” The Chief
Engineer is responsible for all operations and maintenance of all engineering
equipment throughout the ship.

Second Engineer: The Second Engineer is the officer responsible for supervising the
daily maintenance and operation of the engineering systems. He or she reports
directly to the Chief Engineer. The Second Engineer is second in command in the
engine department after the ship’s Chief Engineer. The person holding this position
is typically the busiest engineer onboard the ship, due to the supervisory role this
engineer plays and the operations duties performed. Operational duties include
responsibility for the refrigeration systems, main engines, and any other equipment
not assigned to the third or fourth engineers.

The Third Engineer: is junior to the second engineer in the engine department and
is usually in charge of boilers, fuel, auxiliary engines, condensate, and feed systems.
This engineer is typically in charge of bunkering if the officer holds a valid certificate
for fuel transfer operations.

Fourth Engineer: The Fourth Engineer is junior to the third engineer in the engine
department. The most junior marine engineer of the ship is usually responsible for
electrical, sewage treatment, lube oil, bilge, and oily water separation systems.
Depending on usage, this person usually stands a watch. Moreover, the fourth
engineer may assist the third officer in maintaining the lifeboats’ proper operation .

STEWARD’S DEPARTMENT
Chief Steward: The Chief Steward directs and assigns personnel that does functions
such as preparing meals, cleaning and maintaining officers’ quarters, and managing
the stores. The Chief Steward also does other activities such as overtime and cost
control records and may require or purchase stores and equipment. Other
additional duties may include taking part in cooking activities. The Chief Steward is
assisted by a chief cook and his/her assistant cooks, mess men and assistant
stewards.
SOLE PROPRIETORSHIP
A sole proprietorship, also known as a sole trader-ship, individual
entrepreneurship or proprietorship, is a type of enterprise owned and run by one
person and in which there is no legal distinction between the owner and
the business entity.

PARTNERSHIP
A partnership is an arrangement between two or more people to oversee business
operations and share its profits and liabilities. In a general partnership company, all
members share both profits and liabilities. Professionals like doctors and lawyers
often form a limited liability partnership.

LIMITED LIABILITY
Limited liability is a type of legal structure for an organization where a corporate
loss will not exceed the amount invested in a partnership or limited liability
company (LLC). In other words, investors’ and owners’ private assets are not at risk
if the company fails.

PUBLIC LIABILITY
This is the area of compensation law that covers any claims that falls outside of
workers’ compensation, medical negligence and road and vehicle accidents.

WEEK 3
PLANNING
Planning refers to the process of deciding what to do and how to do it. … Good
planning requires a process that clearly defines the steps leading to the most
appropriate solutions. Planning is an important aspect of systems engineering
management (SEM). ... The planning involves the success-critical stakeholders to
ensure that necessary tasks are defined with the right timing in the life cycle in
order to manage acceptable risks levels, meet schedules, and avoid costly
omissions
CONTROL PROCESS
The “Control Process” is a method that can be used to make sure standards are
being met within an organization. It involves the careful collection of information
about a system, process, person, or group of people in order to make necessary
decisions about each.

Control process consists of five steps:

(1) set standards

(2) measure performance

(3) compare performance to standards

(4) determine the reasons for deviations

(5) take corrective action as needed

WEEK 4
MANPOWER
Manpower refers to all the staff who is appointed in different positions for
performing administrative, clerical as well as technical jobs. Administrative
manpower and technical manpower are two types of manpower. There are
basically 4 types of training method which are

1. On-the-job oriented training methods:

On-the-job training is probably the most common approach to training which

can range from relatively unsophisticated “observe and copy” method to highly
structured courses. In this method, the new employee is placed on a job and
taught the skills necessary to perform it. A trainer or superior teaches the
employee. Since trainee learns by observing and handling the job, this method
is also termed as ‘observing, and copying’ or ‘learning by doing’.
 2. Simulation Methods:

Simulation is a technique which duplicates, as nearly as possible, the actual

conditions encountered on a job. These methods have been most widely used in
the aeronautical industry.

3. Knowledge-Based Method:

In this method, an attempt is made to impart employee’s knowledge in any subject

area covering the aspects like its concepts and theories, basic principles and pure
and applied knowing of the subject.

4. Experiential Methods:

The objective of these methods is to help an individual understand one and others.
This is done through attitudinal change. Such understanding helps an individual
understand the dynamics of human relationships in a work situation, including at
times his managerial style.

VARIOUS METHODS OF ADVERTISING FOR RECRUITMENT

Recruitment advertising is the marketing process of capturing candidates’ interest
in your company via advertisements, for the purpose of developing a talent
pipeline. There are two major method of recruitment advertising

1. Traditional Advertising

Many leading employers utilize traditional advertising methods to build

interest in their open positions. The traditional advertising options available
to employers include print (like newspapers and magazines), radio & TV, and
outdoor advertising (like billboard and taxi ads).

2. Digital/Online Advertising

Since the introduction of the internet, however, digital and online advertising
has become preferred the method for employers that are looking to get the
best return on investment from their spend with the use of software like job
distribution tools, online job boards where people can post their open roles,
niche job sites, and social networks.
Interview Techniques
You should walk into every interview with the goal of receiving a job offer. While
interviewing is not always easy, whether it’s face to face or through a virtual
interview, there are a few things you can do to universally increase your chances of
getting a call back, and ultimately, scoring an offer.

• Be positive.

You’ll be a more attractive candidate (and coworker!) if you’re upbeat and

optimistic about your career outlook. One of the biggest tricks to
interviewing is sounding enthusiastic about the position. Mastering that skill
is a big payoff, though—the interviewer is reassured that you are interested
in the job and that you’ll be a good team player.

• Set goals.

Prior to interviewing, take the time to write down where you want to be in 1
year, 3 years and 5 years. Be specific and map out a step by step plan on how
you’ll achieve those goals. Be focused and tenacious in your goals and let
those ambitions be heard by the hiring company.

• Sell what you can do.

Know what benefits and skills you bring to the table. Read over the job
description and envision the concerns and needs of that employer. By
convincing the interviewer that you can deliver the desired results, you are
more likely to get an offer and you increase your leverage when it comes to
negotiating the salary you want.

• Be approachable and likable.

This shows that you’ll fit with the company culture and get along with other
employees. The best way to make the interviewer confident that you’ll fit in
is to be approachable and likable throughout the interviewing process.
Whether you’re talking to the interviewer face-to-face or through a virtual
interview, smile.
 • Ask the right questions in the right way.

People don’t like hidden agendas and interviewers are no different. Before
any interview, prepare a list of questions that you are comfortable with and
learn to deliver those politely and intelligently.

INDUSTRIAL TRAINING SCHEME

The Students Industrial Work Experience Scheme (SIWES) is a skills training
program designed to expose and prepare students of universities and other tertiary
institutions for the Industrial Work situation they are likely to meet after
graduation. It is also a planned and structured program based on stated and
specific career objectives which are geared towards developing the occupational
competencies of participants. Consequently, the SIWES program is a compulsory
graduation requirement for all Nigerian university students offering certain
courses.

BENEFITS OF INDUSTRIAL TRAINING SCHEME

• First-hand experience working as an engineering professional.

• Applying your technical knowledge and engineering methods to a real-life
situation.
• Working with other engineering professionals.
• Experiencing what it’s like to work in a professional organization.
• Increasing your technical, interpersonal and communication skills, both oral
and written.
• Observing interactions of engineers with other professional groups.
• Witnessing the functioning and organization of business and companies.

MERIT OF ON THE JOB TRAINING

• Increased job satisfaction and morale among employees.

• Increased employee motivation.
• Increased efficiencies in processes, resulting in financial gain.
• Increased capacity to adopt new technologies and methods.
• Increased innovation in strategies and products.
• Reduced employee turnover.
EFFECTS OF INCENTIVES ON PRODUCTION LEVEL

• Incentive schemes are cost effective because of savings that often resulted
from productivity improvements.
• Increase performance by boosting the value people assign to work goals,
causing them to make stronger commitments to those goals and achieve
them
• Provide the meaning, rewards, communication, and support that foster a
sense of value.
• Incentives encourage friendly competition between associates when linked
to job performance.
• Increased morale and positive workplace attitudes.

WEEK 5
EMPLOYER – EMPLOYEE RELATIONSHIP IN AN
ORGANIZATION
Employer-employee relationship exists where the person for whom the services
are performed reserves the right to control not only the end to be achieved but
also the means to be used in reaching such end.

IMPORTANCE OF EMPLOYER – EMPLOYEE RELATIONSHIP IN AN

ORGANIZATION
Maintaining a strong employer and employee relationship can be the key to the
ultimate success of an organization, the results are advantageous. It is known that
if a strong relationship is in place employees will be more productive, more
efficient, create less conflict and will be more loyal.

TRADE UNION
A trade union is an organization made up of members (a membership-based
organization) and its membership must be made up mainly of workers. One of a
trade union’s main aims is to protect and advance the interests of its members in
the workplace. Most trade unions are independent of any employer.
STRIKE
Strike, collective refusal by employees to work under the conditions required by
employers. … The purpose of a strike is to compel an employer to agree to terms
and conditions of employment. The strike is the remedy for employees. Other
strikes can stem from sympathy with other striking unions or from jurisdictional
disputes between two unions. Illegal strikes include sit-down strikes, wildcat
strikes, and partial strikes (such as slowdowns or sick-ins).

LOCKOUTS
A lockout is a work stoppage or denial of employment initiated by the management
of a company during a labor dispute. In contrast to a strike, in which employees
refuse to work, a lockout is initiated by employers or industry owners as the remedy
for the employer of the company or industry. For these reasons, lockouts are
referred to as the antithesis of strikes. Lockout is intended to exert similar pressure
on the employees and the union

N.B - While In the struggle between the employers and employees, lockout and
strikes work as weapons

ADVANTAGES OF TRADE UNIONS

• Unions provide work protection.

• Unions promote higher wages and better benefits.
• Unions are economic trend setters.
• Political organizing is easier.

DISADVANTAGES OF TRADE UNIONS

• Labor unions discourage individuality.

• Unions make it harder to promote and terminate workers.
• Unions can drive up costs.

COLLABORATIVE BARGANING
Collective bargaining is the process in which working people, through their unions,
negotiate contracts with their employers to determine their terms of employment,
including pay, benefits, hours, leave, job health and safety policies, ways to balance
work and family, and more.

ROLES OF INDUSTRIAL ARBITRATION

• Industrial arbitration helps to prevent or settle labor disputes that may arise
between an industrial employer and a union, union member, or union
representative to prevent legal action taking place and finding less costly
ways to settle disputes.
• Helps To promote industrial harmony, and regulate the relations between
employers and their employees; between the trade unions and employer
organizations; and resolve disputes arising from these relations.

WORKERS PARTICIPATION ON MANAGEMENT

Workers participation in management refers to the participation of non-
managerial employees in the decision-making process of the organization. Workers
participation gives employees the mental and psychological satisfaction and
thereby increase their involvement in the affairs of the organization. The objectives
of workers’ participation in management are as follows:

• To raise level of motivation of workers by closer involvement.

• To provide opportunity for expression and to provide a sense of importance
to workers.
• To develop ties of understanding leading to better effort and harmony.

WEEK 6
BASIC CONCEPT AND SCOPE OF ECONOMICS
Economics is defined as the social science that deals with the production,
distribution, and consumption of goods and services. No business can flourish
without applying the principles of economics. The nature and scope of economics
depend upon the interaction of economic agents and how economies work.
SCOPE OF ECONOMICS
Economists use different economic theories to solve various economic problems in
society. Its applicability is very vast. From a small organization to a multinational
firm, economic laws come into play. The scope of economics can be understood
under two subheads: Microeconomics and Macroeconomics. Let’s discuss these in
detail:

MICROECONOMICS
Microeconomics examines individual economic activity, industries, and their
interaction. It has the following characteristics:
• Elasticity: It determines the ratio of change in the proportion of one
variable to another variable. For example- the income elasticity of
demand, the price elasticity of demand, the price elasticity of supply, etc.
• Theory of Production: It involves an efficient conversion of input into
output. For example- packaging, shipping, storing, and manufacturing.
• Cost of Production: With the help of this theory, the object price is
evaluated by the price of resources.
• Monopoly: Under this theory, the dominance of a single entity is studied
in a particular field.
• Oligopoly: It corresponds to the dominance of small entities in a market.

MACROECONOMICS
It is the study of an economy as a whole. It explains broad aggregates and their
interactions “top down.” Macroeconomics has the following characteristics:
• Growth: It studies the factors which explain economic growth such as the
increase in output per capita of a country over a long period of time.
• Business Cycle: This theory emerged after the Great Depression of the
1930s. It advocates the involvement of the central bank and the government
to formulate monetary and fiscal policies to monitor the output over the
business cycle.
• Unemployment: It is measured by the unemployment rate. It is caused by
various factors like rising in wages, a shortfall in vacancies, and more.
 • Inflation and Deflation: Inflation corresponds to an increase in the price of a
commodity, while deflation corresponds to a decrease in the price of a
commodity. These indicators are valuable to evaluate the status of the
economy of a country.
DEMAND THEORY

Demand theory describes the way that changes in the quantity of a good or service
demanded by consumers affects its price in the market, The theory states that the
higher the price of a product is, all else equal, the less of it will be demanded,
inferring a downward sloping demand curve.

CONCEPT OF DEMAND
An effective demand has three characteristics namely
1. Desire
2. Willingness
3. Ability of an individual to pay for a product.
The demand for a product is always defined in reference to three key factors
1. Price
2. Point of time
3. Market place.

TYPES OF DEMAND
• Joint demand.
• Composite demand.
• Short-run and long-run demand.
• Price demand.
 • Income demand.
• Competitive demand.
• Direct and derived demand.

SUPPLY THEORY

The law of supply is a fundamental principle of economic theory which states that,
keeping other factors constant, an increase in price results in an increase in
quantity supplied. In other words, there is a direct relationship between price and
quantity: quantities respond in the same direction as price changes.

CONCEPT OF SUPPLY
Supply is a fundamental economic concept that describes the total amount of a
specific good or service that is available to consumers. Supply can relate to the
amount available at a specific price or the amount available across a range of prices
if displayed on a graph.

TYPES OF SUPPLY
• Composite Supply: This occurs when a certain commodity can serve two
or more purposes.
• Competitive Supply: This type of supply occurs with commodities that
serve as substitutes or alternatives to one another, e.g. meat and fish,
butter and margarine, etc.
• Joint or Complementary Supply: This type of supply occurs when two or
more commodities are produced and supplied from one source.
CONCEPT OF COST
Concept of cost refers to the amount of payment made to acquire any goods and
services. In a simpler way, the concept of cost is a financial valuation of resources,
materials, undergone risks, time and utilities consumed to purchase goods and
services.

TYPES OF COSTS
• Direct Costs.
• Indirect Costs.
• Fixed Costs.
• Variable Costs.
• Operating Costs.
• Opportunity Costs.
• Sunk Costs.
• Controllable Costs.

CONCEPT OF PRICING
Pricing can be defined as a process of determining the value that is received by an
organization in exchange of its products or services. … The price of a product is
influenced by a number of factors, such as manufacturing cost, competition,
market conditions, and quality of the product.

TYPES OF PRICING
• Premium pricing.
• Penetration pricing.
• Economy pricing.
• Skimming price.
• Psychological pricing.
• Neutral strategy.
• Captive product pricing.
 WEEK 7
KNOWING ELEMENTS OF LAW
ELEMENT OF LEGISLATION
Legislation is the process or product of enrolling, enacting, or promulgating law by
a legislature, parliament, or analogous governing body.

BODY OF LEGISLATION
• Body of the Act/Regulation – may be divided into a standard hierarchy –
Chapters, Orders, Parts, Divisions, Subdivisions or sometimes legislation
may simply contain sections/regulations/rules;
• Sections or Regulations – the lowest groupings or levels;
• An Act will always contain sections; A regulation will always contain
Regulations or Rules;
• Section 1 usually states the short title of the Act or Regulation/Rules;
• Section 2 usually contains information about when the Act or
Regulation/Rules commences;
• Sections (regulations) may be further divided into sub-sections (sub-
regulations) and paragraphs.

WAGES ACT
The Payment of Wages Act, 1936 regulates the payment of wages to certain
classes of employed individuals. It applies to all employees working in a factory or
working through a sub-contractor or directly with the railway administration or
those employed in the industrial sector as the Act specifies.

WORKMAN'S COMPENSATION
Workers’ compensation or workers’ comp is a form of insurance providing wage
replacement and medical benefits to employees injured in the course of
employment in exchange for mandatory relinquishment of the employee’s right
to sue his or her employer for the tort of negligence.
CONTRACT
A contract is a legally binding agreement that defines and governs the rights and
duties between or among its parties. A contract is legally enforceable when it
meets the requirements of applicable law. A contract typically involves the
exchange of goods, services, money, or a promise of any of those.

ELEMENT OF CONTRACT
• Contract Basics.
• Contract Classification.
• Offer.
• Acceptance.
• Meeting of the Minds.
• Consideration.
• Capacity.
• Legality.

CONTRACT OBLIGATION
Contract obligations are those duties that each party is legally responsible for in a
contract agreement. In a contract, each party exchanges something of value,
whether it be a product, services, money, etc. On both sides of the agreement,
each party has various obligations in connected with this exchange.

TYPES OF OBLIGATIONS
THE ACTIVE SUBJECT- is the person who has the right or power to demand the
performance or payment of the obligation. He is also called the obligee or the
creditor.
THE PASSIVE SUBJECT- is the person bound to perform or to pay. He is the one
against whom the obligation can be demanded. He is also called the obligor or the
debtor.
THE PRESTATION- is the object of the contract. It is the conduct required to be
observed by the debtor or the obligor. It may be an obligation to give, to do, or
not to do.
THE VINCULUM JURIS- is also known as the juridical or legal Tie. Other authors
call it the efficient cause. It is that which binds or connects the parties to the
obligation. (De on) In other words, it is the legal relation between the debtor and
the creditor (or obligor and obligee).

PURPOSE OF THE ISM CODE

The purpose of the ISM Code is to provide an international standard for the safe
management and operation of ships and for pollution prevention.

PORT STATE CONTROL

Port state control (PSC) is an inspection regime for countries to inspect foreign-
registered ships in port other than those of the flag state and take action against
ships that are not in compliance.

FLAG STATE CONTROL

The flag state has the authority and responsibility to enforce regulations over
vessels registered under its flag, including those relating to inspection,
certification, and issuance of safety and pollution prevention documents.
Normally the nationality (i.e., flag) of the ship determines the taxing jurisdiction.

RATIONALE OF SAFETY MANAGEMENT

A safety management system is a series of policies and procedures organizations
use to reduce accidents and illnesses among employees. According to OSHA,
“Effective Safety and Health Management Systems (SHMS) have proven to be a
decisive factor in reducing the extent and severity of work-related injuries and
illnesses.

INTERNATIONAL SHIP AND PORT FACILITY SECURITY CODE

The ISPS Code is a set of measures to enhance the security of ships and port
facilities. … The ISPS Code is a set of measures to enhance the security of ships
and port facilities. It was developed in response of the perceived threats to ships
and port facilities after the 9/11 attack.
SECURITY LEVELS OF ISPS CODE
Security Level 1 – normal – this is the level at which the ships and port facilities
operate under normal conditions.
Security Level 2 – heightened – this is a level that will apply whenever there is a
heightened risk of a security incident.
Security Level 3 – Restricted – Will include additional security measures for an
incident that is forthcoming or has already occurred that must be maintained for
a limited time frame.

ISM AUDITORS
“Audit” means a process of systematic and independent verification, through the
collection of objective evidence, to determine whether the SMS complies with the
requirements of the ISM Code and whether the Safety Management System
(SMS) is implemented effectively to achieve the Code’s objectives.

WEEK 8
WORKING CONDITIONS OF NIGERIAN NAVY AND
UNIVERSITIES
NIGERIAN DEFENCE ACADEMY
The Nigerian Defence Academy (NDA) is a military university based in Kaduna,
Nigeria that trains officer cadets for commissioning into one of the three services
of the Nigerian Armed Forces: The Army, the Navy, and the Air Force. The
duration of training at the Nigerian Defence Academy is five years (four years
academic and one+ year military).

MARITIME ACADEMY OF NIGERIA

The Maritime Academy of Nigeria, formerly known and address as the Nautical
College of Nigeria was established in 1977 by the Federal Executive Conclusion
No. EC (77) 172 with assistance from the International Maritime Organization
(IMO). The Academy was originally designed as an integrated institution for the
education and training of shipboard officers and ratings and shore-based
management personnel.

WORKING CONDITION OF NIMASA

The Nigerian Maritime Administration and Safety Agency (NIMASA), formerly the
National Maritime Authority (NMA) is responsible for regulations related to
Nigerian shipping, maritime labor and coastal waters. The agency also undertakes
inspections and provides search and rescue services.

WEEK 9
REVIEW OF STCW 78 AND SUBSEQUENT
AMENDMENT
1978 STCW CONVENTION
International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers (STCW), 1978 sets minimum qualification standards
for masters, officers and watch personnel on seagoing merchant ships and large
yachts.[2] STCW was adopted in 1978 by conference at the International Maritime
Organization (IMO) in London, and entered into force in 1984.

1995 STCW AMENDMENT

The 1995 amendments entered into force on 1 February 1997. One of the major
features of the revision was the division of the technical annex into regulations,
divided into Chapters as before, and a new STCW Code, to which many technical
regulations were transferred.
The major amendment concerned are
• Enhancement of port state control
• Communication of information to IMO to allow for mutual oversight and
consistency in application of standards
• Quality standards systems (QSS), oversight of training, assessment, and
certification procedures.
1997 STCW AMENDMENT
The 1997 amendments, to the Convention and to part A of the Code, relating to
training of personnel on passenger and ro-ro passenger ships, were adopted by
resolutions MSC.66(68) and MSC.67(68) and entered into force on 1 January
2003.

2006 STCW AMENDMENT

The 2006 amendments, to part A of the Code, introducing, inter alia, new
measures pertaining to ship security officers, were adopted by resolution
MSC.209(81) and entered into force on 1 January 2008.

2010 STCW AMENDMENT

The 2010 amendments (the Manila Amendments) to the Convention and Code
were adopted by resolutions 1 and 2, respectively, by a Conference of Parties to
the STCW Convention, held in Manila, Philippines, from 21 to 25 June 2010 (2010
STCW Conference). The amendments mainly introduced:
• Improved measures to prevent fraudulent practices associated with
certificates of competency and strengthen the evaluation process
(monitoring of Parties’ compliance with the Convention).
• Strengthened provisions on medical standards.
• Revised requirements on hours of work and rest and new requirements for
the prevention of drug and alcohol abuse.
• New certification requirements for able seafarers, deck and engine.
• New requirements relating to training in modern technology such as
electronic charts and information systems (ECDIS).
• New requirements for marine environment awareness training and training
in leadership and teamwork.
• New training and certification requirements for electro-technical officers
and electro-technical ratings.
• Updating of competence requirements for personnel serving on board all
types of tankers, including new requirements for personnel serving on
liquefied gas tankers.
• New requirements for security training for all seafarers, as well as
provisions to ensure that seafarers are properly trained regarding piracy
and armed robbery.
• Refresher training module every five years for basic training on personal
survival techniques and fire prevention and firefighting; advanced
firefighting; and proficiency in survival craft, rescue boats and fast rescue
boats.
• Introduction of modern training methodology including distance learning
and e-learning.
• New training guidance for personnel serving on board ships operating in
polar waters. Part A currently contains mandatory provisions in this regard.
• New training guidance for personnel operating Dynamic Positioning
Systems.