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Shvoong Home>Business & Economy>Management & Leadership>ORGANIZATIONAL CHANGES IN PORTS Summary

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ORGANIZATIONAL CHANGES IN PORTS

Book Summary by: JRNICOLETTI    

Original Author: Nicoletti, J.R.
This abstract was translated from MUDANÇAS ORGANIZACIONAIS NOS PORTOS
The organizations are constantly moving with the objective to survive in the economic environment, to get more profits or
to reach its strategic goals. In the case of the ports, most of Brazilian publications approach the regulation changes, new investments and technologies. They are the two main regulations landmarks of the sector. The first one, the “Law of Modernization of the Ports” of 1993, was the beginning process of privatization of the port sector. The second are the initiatives of the Federal Government in stimulating public-private partnerships - PPP's. However, beyond the regulations aspects, other changes are occurring in the scope of the ports.
a) Change of Objective and Strategy: it represents a realignment of products and markets of the organization. This type of change is the preliminary step for the development of subsequent organizational changes. For example, the legal changes had determined the new objectives and strategies in the port environment. The Company Dock berths left of being the only exclusive port operator to become it “Port Authority”. For exporting/import commercial organizations, to get the concession of an area in the port, to invest, to implant and to operate a port terminal are examples of strategy and objective changes. From one determined moment, these organizations until customers of the state port, turn over they proper operators port terminals. 
b) People: Some authors affirm that the reduction of hierarchy by “downsizing process” hasthe objective to immediately reduce the number of people in the organization only. The cut of positions considered wages higher, with the inadvertent dismissal of specialized people and with ability-key, can cost expensive to the organization, for the absence of the “workers of the knowledge”. On the other side, in the operational level, a type of change that comes being implemented is the substitution of people of little qualification for others of bigger qualification, or multi-functional, result of the requirements of the new technologies, market pressures and the competition; c) Products and Services: The development of new products and services is an expansion strategy and can provide the entrance of the organization in less competitive niches of market, in way that can have success with a lesser degree of effort. A variety of possibilities exists to offer complementary services to traditionally offered by the port terminals. The complementary services of “added value” include the processing of products in accordance with the specifications of the customer or the country of destination, packing, improvement, election and reverse speed-packing, labeling, assembly of kits and several other services;
d)  Technology: The technological changes are concentrated predominantly in the use of computers and the communications. In the port environment, we have the auxiliary systems of navigation for satellite, management systems of lines, tracking of loads, planning and accompaniment of the operations, monitoring and scanning (X-Ray) of containers, derricks, winchs and gantries operated by radio frequency (“joystick”), beyond the systems of planning of materials, automatic movement, palletization and handling, among others. New processes of work, with multi-functional teams “cross-functional”, where diverse workers with different abilities and knowledge, become more flexible the work arrangements, providing an integrated vision to the activities of the port terminal.
e) Organizational development: it is a sub-group of the strategies of organizational change that uses sciences of the behavior, focused in the improvement of the relationship and the interaction between the people, to plan the changes in the organization. For the time being, this type of change has been little explored in the port organizations;
f)  Drawing and Structure: the aiming adopted in the majority of books and articles is to become thorganization more “flattened” and more decentralized.  The reduction of the level numbers and the decentralization mean that the workers will need new abilities. More than that, the workers must to know the new processes, not only operational, but that they also involve decision taking and the Inter-relationship between the organizations.   The informal structure and the internal culture are important and they do not have to be ignored, therefore they can harm the change process.
g) Cultural change: any change that affects the culture means to modify norms, values, beliefs and expectations of the organization. The international models of quality management and attendance to the norms and standards are examples of cultural changes. Here, it is important to consider elements as the search for the customer satisfactions, application processes for continuous improvement and opening of communication channel between the members of the inferior and superior levels of the hierarchy. The changes in the port organizations demand high degree of cultural change, normally not worked adequately by the organizations.  
The changes are interrelated to some areas, in way that the transformation suffered in an area, generally implies in change in other areas. The ability in detecting these consequences is one of the great challenges for the organizations.   In a port environment, the identification of critical points that involve the Inter-relationship among diverse components of its functioning structure (Port Unions, Operators, Port Authority, Maritime Agency, Customs, Transporters, Overseers, Managing Workmanship agencies and other elements) is considered the key for the success of any process of change. 
Published: November 22, 2007
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