Modernisation programme to increase productivity Essay

Modernisation programme to increase productivity - Essay Example To effectively pull off organisational change that creates positive outcomes is not just an administrative challenge; it is also a cognitive challenge. As it is, managers and organization leaders, just like people in general, find it complicated to think about dynamic experiences like feedback loops and time delays and easier to focus on instantaneous end products and detectable changes. The result is a focus on the short-term and local not the longer-term and global consequences from change, an issue that organisational inducements magnify. Hence, local enhancements in cost reduction or efficiency are presumed to do good to the firm as whole, while little attention is given to essentially guarantee results for the company The shipping industry is a segment of growing significance in world trade as it is the only method that is employed for the transfer of bulky deliveries that tenders the most economical and most gainful haulage compared to rail, road and air. A huge amount of the E uropean Union's trade with other nations and a large percentage of the intra-community trade are accomplished with sea transport and a sizeable quantity of all international U.S. shipments move by water transportation. The widespread procedure of ocean shipping transportation strengthens the considerable role of shipping firms within the supply chain structure environment since there is a correlation between the effectiveness and efficacy of these shipping organisations with that of the supply chain. However, because of shipping companies' significance and prominence in world trade, it they experience considerable issues and challenges in the course of their business operations. Currently, Linkspan Shipping is going through trading difficulties and because of these operational complexities, it aims to trim down outlays. A modernisation programme is called for that will lessen crewing personnel on board each of its ships. With this objective, the company intends to execute novel on-board technology that is expected to increase productivity and enhance working conditions for crew personnel. The process will entail the implementation of 1) integrated bridge systems, autopilot, etc; 2) flexible work models with the prospect of developing individual skills that include both engineering and deck hand duties, and; 3) a programme of ship renovation, entailing new cranes, revising other loading and unloading equipment and improve safety on board. To efficiently craft its programme design, effectively carry out the implementation and plan for its evaluation, strategies and recommendations are explicitly and concisely discussed below: 1) As an initial step, Linkspan must employ Enterprise Resource Planning towards managing the changes that will be implemented within the company. Basically, ERP provides a single information structure for organisation-wide coordination and integration of major business processes. With this approach, information that was formerly disjointed in several systems can flow effortlessly throughout the organisation thereby allowing such data to be shared by business processes either in technical updating, accounting, human resources, hauling operations or in other areas (Laudon and Laudon 2006, pp. 56-57). Basically, in implementing ERP, Linkspan will have four inherent justifications for wanting to avail this innovative scheme -- technology, business process, competitive and strategic. Technology justifications refer to technology dilemmas a firm is facing with its old computer systems, while business process rationales aim at improving Linkspan's' performance. Its competitive rational wil l be the need for the shipping company to stay competitive in business and the strategic reasons are those strategies which the firm intends to execute through ERP where its existing software does not support.