Port Managers - Essay Example

PORTS A Port managers operate in a setting which is in the shipping industry. There are many companies in this industry, of which concrete examples can be given based on real world management decisions. The current examination uses the specific setting of Halterm, where it acts as a shipping terminal facility in Halifax, Nova Scotia, as a setting for management concept. . “Founded in 1969, Halterm Limited, located in the port of Halifax, Nova Scotia, serves as the main terminal operator for many of today’s international shipping lines. Halterm is Atlantic Canada’s largest container terminal operator, specializing in full terminal services for the global shipping industry” (Halterm, 2009). The shipping industry is a very large and integral industry, especially in this age of increasing global business. Specifically, within this larger industry, Halterm is in the global container shipping industry as well as the port industry. Companies in this setting do not deal with air shipping, and is mainly about dealing with rail and sea shipping. Halterm is located in a good location for the industry, since Halifax is a deep-water port with plenty of berths. Although Halifax is further from large-scale commercial areas than some other ports, the time via rail to Chicago has recently been cut significantly (Halterm, 2005). In terms of background for the professional manager, the shipping industry works fairly simply on the surface: companies involved in global exporting and importing hire shipping companies. These companies have large cargo vessels and containers for the products, and they in turn use companies in the port container industry as subcontractors to secure ports and shipping arrangements for the unloading of their cargo and the transfer of cargo containers to rail lines, as well as other related services. The port shipping management position, in its industry, therefore, acts as a sort of shipping hub from which emanates directional spokes: sea cargo coming in, and rail and truck cargo going out. The setting for management concepts can therefore be considered to be mainly in the port terminal industry. Under management in this industry, much of the port loading is done by increasingly automated technologies. This industry in which the company operates also bear analysis, which provides answers and also displays a holistic perspective on the industry. “The intensity of industry competition and an industry’s profit potential are a function of five forces of competition: the threats posed by new entrants, the power of suppliers, the power of buyers, product substitutes, and the intensity of rivalry among competitors” (Hitt et. al, p. 55). Therefore, the first force to look at in this analysis is the threat posed by new competitors. This does not offer substantial threats to the established managers in particular because the costs required to set up a shipping terminal are very prohibitive. Crane equipment alone costs tens of millions of dollars, and this is just the tip of the iceberg in terms of prohibitive costs to setting up a port terminal enterprise. This is an industry in which economies of scale operate, like the aircraft manufacturing industry: initial outlay is very high, and returns are delayed. Therefore, mergers and tensions between the public and private sides of operation are much more substantial and credible competitive threats in this industry than upstart companies. B Accepting new ways of port management may be key to the company’s success in the future as an industry player in an increasingly global marketplace. In many cases, the “new strategic role for HR has attracted interest in the subject beyond the traditionally narrower boundaries of human resource research. The strategic approach draws heavily on psychology, economics, finance, and strategy, and we feel that the best research will likely come from taking an interdisciplinary focus” (Noe et al., 2003). This is also reflected in the recent changes at Halterm in regards to automation, and how this affects the employee culture. “In the past, staff would work in the yard with a pencil and paper recording all the information from each container. The system was inefficient and because of the high volume of containers moving, information became outdated very quickly. As a result, Halterm wanted to implement a solution that would provide real- time access to inventory information” (Halterm, 2000). These solutions traditionally use new technology. From a management perspective, the human resources approach blends some of the lingering good parts of mechanistic approaches (some organization is necessary) with human relations approaches and makes them stronger and more applicable to reality because of their dualism and their respect for the employee. “A human resources manager would institute participation to satisfy employee needs for affiliation and esteem and hope that this… would lead to higher levels of productivity. In contrast, a human resources manager would institute participation to take advantage of the innovative ideas held by subordinates” (Hitt et al, 2003, p. 51). In this way, the employee is valued as an actual human being with ideas and needs rather than a cog in the machine, but at the same time, these emotional needs do not supercede the greater need of assimilating this unique individual into the organizational communication structure of the workplace in an effective manner. “In a human resources organization, the goal is to encourage the flow of ideas from all locations throughout the organization. Thus, in the simplest sense, communication in this organizational approach will include all directional flows— downward, upward, horizontal, and diagonal” (Noe et al., 2003). Not only does this reduce the risk of mixed messages and crossed wires, but it also ensures that the employee will at least feel as if they have some degree of freedom to organize and plan their own agenda (insofar as that agenda is beneficial to the greater good of the port or container terminal management as a structure). Also in terms of HR n port management, it must be realized that this department is always changing to meet new challenges in the industry wide environment. Port managers also need to know how to have skills to adapt to rapidly changing workplace needs and environments. Often, this is a very competitive global industry in which, as the saying goes, time is money. The faster that cargo can be loaded and off-loaded, the better it is for the system that runs on time. In many cases, the use of robotic gantry equipment has been shown to be faster and more effective with increasing technology. To the port manager, this means highlighting the importance of the timely delivery of cargo. Other issues that are brought up, such as robotics and outsourcing labor, are secondary to the overall development of a globally competitive market. As Halterm shows in its own competitors, such as Ceres and others, this is a management environment in which competition and economies of scale are both in operation. The company, to be competitive in such an environment, must be one in which a management structure exists accepting change and advancement in technology. If the management of the port is change averse or technology averse, it is likely that the port system will fall behind competition in terms of time scheduling. REFERENCE Hitt, Michael A., Ireland, R. Duane, and Robert E. Hoskisson (2003). Strategic Management: Competitiveness and Globalization. Mason, OH: Thompson. Noe, Hollenbech, Gerhart, et. al (2003). Human Resource Mangement. 4th Edition. Halterm—Company information (2005). http://www.halterm.com. Halterm—About us (2005). http://www.halterm.com. Halterm case study (2000). http://www.psionteklogix.com/public.aspx?s=com&p=Solutions&CaseStudy=909 Halterm Limited vs. Halifax Port Authority (2000). Court Decision 73W2000. http://www.cta-otc.gc.ca/rulings-decisions/decisions/2000/W/73-W-2000_e.html. Read More