Organisational structure and external relations of an international road freight carrier

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Postgraduate Student at the Department of Management Lesya Ukrainka Volyn National University

Organisational structure and external relations of an international road freight carrier

Olesia Totska, Doctor of Economic Sciences, Full Professor, Professor at the Department of Management Maksym Prosvirnikov

Abstract

Olesia Totska, Doctor of Economic Sciences, Professor at the Department of Management. Maksym Prosvirnikov, Graduate Student at the Department of Management, Lesya Ukrainka Volyn National University. Organisational structure and external relations of an international road freight carrier.

The purpose of the study is to examine the organisational structure and external relations of an international road freight carrier, as well as the functions and tasks of its personnel. One of the domestic companies engaged in international road freight transportation was selected for the analysis. It has been determined that the company has a line-functional organisational management structure, where the line units make decisions and the functional units ensure their implementation. The organisational structure of the international road freight carrier has a peculiarity - it has two departments: logistics and forwarding and transport haulage. The assistant to the director, heads and managers of the company's main departments have the most extensive list of performed functions and tasks. The main difference between the activities of the logistics department and the forwarding and transport haulage department is that the former provides transport services with the using the company's own vehicles, while the latter engages other carriers for transportation. The external organisations with which the international road freight carrier contacts can be divided into several groups: counterparties, regulatory authorities, and the bank.

Key words: international road freight carrier, organisational structure, management levels, functions and tasks of personnel, external relations.

Анотація

Тоцька Олеся Леонтіївна, доктор економічних наук, професор кафедри менеджменту. Просвірніков Максим Валерійович, аспірант кафедри менеджменту, Волинський національний університет імені Лесі Українки. Організаційна структура та зовнішні взаємозв'язки міжнародного автомобільного вантажного перевізника.

Для розвитку будь-якої організації, і в тому числі, транспортної, та досягнення нею стратегічних і тактичних цілей, важливим є її організаційна структура. Метою дослідження є розгляд організаційної структури та зовнішніх взаємозв'язків міжнародного автомобільного вантажного перевізника, а також функцій і завдань його управлінського й іншого персоналу. Для налізу обрану одну з вітчизняних компаній, яка здійснює міжнародні автомобільні вантажні перевезення. Визначено, що компанія має лінійно-функціональну організаційну структуру управління, де лінійні ланки приймають рішення, а функціональні забезпечують їх реалізацію. Управлінцями вищого рівня, які відповідають за прийняття стратегічних управлінських рішень і формування політики компанії, є директор, фінансовий і комерційний директори. На нижньому рівні управління знаходяться керівники операційних підрозділів (керівник відділу логістики, керівник відділу експедиції та перегону транспорту, механік-інженер, завідуючий господарчої служби та відпуску пально-мастильних матеріалів), які беруть участь у бізнес-процесах компанії (наданні транспортних послуг), а також керівник сервісного підрозділу, який обслуговує управління основною діяльністю (головний бухгалтер). Особливістю організаційної структури міжнародного автомобільного вантажного перевізника є наявність двох відділів: логістики, а також експедиції та перегону транспорту. Найбільш розлогий перелік виконуваних функцій і завдань мають помічник директора, керівники і менеджери основних відділів компанії. Основною відмінністю між діяльністю відділу логістики та відділу експедиції й перегону транспорту є те, що перший надає транспортні послуги власними автомобілями компанії, а другий залучає до перевезень інші компанії-пере- візники. Зовнішні організації, з якими контактує міжнародний автомобільний вантажний перевізник, можна розділити на декілька груп: контрагенти (компанії-клієнти, компанії-постачальники товарів і послуг, ком- панії-консультанти, експедиційні компанії, транспортні компанії), контролюючі органи (податкова служба, митна служба, інші контролюючі установи), банк.

Ключові слова: міжнародний автомобільний вантажний перевізник, організаційна структура, рівні управління, функції та завдання персоналу, зовнішні взаємозв'язки.

Introduction

The organisational structure of a company is its construction that allows it to achieve strategic and tactical goals. It is a system that reflects the relationships between individual employees and organisational units. Since companies' economic activities can take place in various industries, including transport (land and pipeline transport, water transport, air transport [1]), the organisational structures of enterprises in each industry differ not only in type (linear, functional, line-functional, product, matrix, etc.) and number of elements, but also in the presence of specific units and positions inherent in this particular industry. In addition, the external relations of companies engaged in different types of activities also differ. organizational strategic management staff

Analysis of recent research and publications. The following domestic scientists conducted their research related to the organisational structures of transport enterprises of Ukraine: T.A. Vorkut et al. have proposed an approach to systematisation of indicators for assessing the performance of organisational structures engaged in the carriage of goods by road in the context of implementing a balanced scorecard [2]; A. Glyebova has considered structural changes in the management system of enterprises and organisations of railway transport of Ukraine [3]; V.L. Dykan and A.S. Hlazkova have considered the main aspects of creating an organisational and hierarchical structure of the transport and industrial park [4]; G.V. Poyasnik has substantiated the expediency of integrating a separate structural unit for economic security management at a motor transport enterprise [5]; N.V. Rybalko has identified the main directions of formation of the organisational structure of quality control at car service enterprises [6]; Yu.O. Tretynychenko and I.I. Khalatska have developed a model of an integral indicator for multi-criteria assessment of the balance of work of territorial organisational units of enterprises engaged in the delivery of small cargoes in terms of postal services, express delivery, etc. by road using terminal technology [7]. In turn, O.L. Totska has investigated export-import operations with services (including transport) between Ukraine and European countries [8-9].

Foreign scholars have conducted such studies: J. Hlavaty et al. have shown on the basis of theories and studies of the organisational structure of selected passenger railway transport organisations, that an appropriate organisational structure is an important prerequisite for the implementation of the chosen strategy [10]; M. Kadlubek has studied logistics services of consumers in the organisational structures of transport companies [11-13]; D.V. Lomotko et al. have determined that one of the main factors to be taken into account when forming the organisational structure of logistics centers is the ability to achieve a high level of service, taking into account the presence of internal and external constraints [14]; L. Mindur has described the organisational structure of the Italian national railways [15].

Objectives of the article. Unlike the aforementioned publications, the purpose of this study is to examine the organisational structure and external relations of an international road freight carrier, as well as the functions and tasks of its personnel.

The main material of the study. The organisational structure of one of the domestic companies engaged in international freight transportation, as well as the list of external organisations with which it is in contact, is shown in Figure 1.

Figure 1. Organisational structure and external organisations with which an international road freight carrier cooperates

Source: authors'elaboration

Figure 1 shows that the company has a line-functional organisational management structure, where line managers make decisions and functional managers ensure their implementation. In particular, top-level managers responsible for strategic management decisions and policy making are CEO, CFO and CCO. At the lower level of management are the heads of operational departments (head of the logistics department, head of the forwarding and transport haulage department, mechanical engineer, head of the economic service and fuel and lubricants supply (hereinafter - F&L)), who are involved in the company's business processes (provision of transport services), as well as the head of the service department, who manages the core business (chief accountant). The organisational structure of an international road freight carrier is characterised by two departments: logistics and forwarding and transport haulage.

The functions and tasks of the company's management personnel are described in more detail in Table 1, and those of other personnel in Table 2.

Thus, the assistant to the director, heads and managers of the company's main departments have a rather extensive list of performed functions and tasks. The logistics department provides transport services with the company's own vehicles, while the forwarding and haulage transport department engages other carriers for transportation; the mechanical engineer is also the head of the economic service and is responsible for the F&L supply.

A description of the external relations of the employees of the international road freight carrier's employees is provided in Tables 3 and 4.

Thus, in the course of their activities, employees of an international road freight carrier have to deal with representatives of counterparties (client companies, companies supplying goods and services, consulting companies, forwarding companies, transport companies), customs (customs brokers, customs officers), other regulatory authorities (tax officials, etc.), and the bank.

Table 1 Functions and tasks of the management personnel of an international road freight carrier

Table 2 Functions and tasks of other personnel of an international road freight carrier

Source: authors'elaboration

Table 3 External relationships of the management personnel of an international road freight carrier

Table 4 External relations of other personnel of the international road freight carrier

Source: authors'elaboration

Conclusions

For the development of any organisation and the achievement of its strategic and tactical goals, its organisational structure is important. The object of the study was one of the domestic companies of Ukraine that provides international road freight transport services. The analysis has shown that the company has a line-functional organisational management structure, where line units make decisions, and functional units ensure their implementation. The peculiarity of the transport organisation is the presence of two departments: logistics, as well as forwarding and transport haulage. The most extensive list of functions and tasks is performed by the assistant to the director, heads and managers of the company's main departments. The main difference between the activities of the logistics department and the forwarding and transport haulage department is that the former provides transport services using the company's own vehicles, while the latter engages other carriers for transportation. The external organisations with which the international road freight carrier comes into contact can be divided into several groups: contractors, regulatory authorities, and the bank.

References

1. Verkhovna Rada of Ukraine (2024) Classification of types of economic activity DK 009:2010 (with changes).

2. Vorkut T. A., Bilonoh O. Ye., Sopotsko O. Yu & Tretynychenko Yu. O. (2017) Systematyzatsiia pokaznykiv otsini- uvannia orhanizatsiinykh struktur pereviznykiv avtomobilnoho transportu v konteksti realizatsii zbalansovanoi systemy pokaznykiv [Systematization of Indicators of Evaluation of Organizational Structures of Carriers of Motor Transport in the Context of the Implementation of a Balanced System of Indicators]. Economy and Transport Management, vol. 5, pp. 25-40.

3. Glyebova A. (2012) Analiz strukturnykh zmin u systemi upravlinnia pidpryiemstvamy i orhanizatsiiamy zaliznychnoho transportu Ukrainy [Analysis of Structural Changes in Management of Enterprises and Organizations of Railway Transport of Ukraine]. EconomicAnalysis, vol. 10(3), pp. 249-253.

4. Dykan V. L. & Hlazkova A. S. (2016) Vdoskonalennia orhanizatsiino-upravlinskoi struktury zabezpechennia vzaiemodii zaliznychnoho transportu i promyslovosti [Improvement of the Organizational and Management Structure of Ensuring the Interaction of Railway Transport and Industry]. Intelligence XXI, no. 5, pp. 57-62.

5. Poyasnik G. V (2019) Mistse pidrozdilu ekonomichnoi bezpeky v umovakh typovoi orhanizatsiinoi struktury upravlinnia avtotransportnym pidpryiemstvom [Departments of Economic Security in the Conditions of a Typical Organizational Structure of Managing a Motor Transport Company]. Problems and Prospects of Entrepreneurship Development, no. 2, pp. 192-200.

6. Rybalko N. V (2012) Orhanizatsiina struktura kontroliu yakosti na avtoservisnykh pidpryiemstvakh [Organizational Structure of Quality Control at Car Service Enterprises]. Bulletin of the Donetsk University ofEconomics and Law, Tretynychenko Yu. O. & Khalatska I. I. (2018) Model intehralnoho pokaznyka dlia otsiniuvannia roboty orhaniza- tsiinykh struktur pidpryiemstv pereviznykiv avtomobilnoho transportu [The Model of an Integral Indicator for Evaluating the Work of Organizational Structures of Enterprises of Road Transport Carriers]. Economy and Management on Transport, vol. 6, pp. 64-70.

7. Totska O. L. (2022) Finansovi perspektyvy zovnishnoi torhivli posluhamy Ukrainy z krainamy Skhidnoi Yevropy [Financial Prospects of Foreign Trade in Ukrainian Services with Eastern European Countries]. Socio-Economic Research Bulletin, no. 1-2 (80-81), pp. 122-133.

8. Totska O. (2023) Ukraine-EU: Analytical Assessment of International Trade in Services. Economy and the Region, no. 4 (91), pp. 108-117.

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11. Kadlubek M. (2019) Management in Organizational Structures of Enterprises in the Light of Research Results. Bioscience Biotechnology Research Communications, vol. 12(1), special issue, pp. 27-33.

12. Kadlubek M. (2018) Management Solutions of Transport Companies not Possessing the Unit Dealing with Logistics Customer Service. In M. Suchanek (Ed.), New Research Trends in Transport Sustainability and Innovation. Cham, Switzerland: Springer International Publishing, pp. 88-97.

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14. Mindur L. (2017) Development of Italian Railways in the Period 2002-2015, Including High-Speed Railway Lines. Scientific Journal of Silesian University of Technology. Series Transport, vol. 96, pp. 115-127.

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