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- - Deregulation of the Motor Carrier Industry A Study of LTL Management Size Structure and Organization Congress passed the Motor Carrier ActMCA of 1980 to introduce greater competition in the motor carrier industry through significant reductions in entry barriers and price restrictions While there has been lots of research into the impacts of motor carrier deregulation little attention has been given to the effects of deregulation on management characteristics and structure Some recent work however looked at changes in size structure and organization of railroad management in response to the resulting deregulation from the passage of the Staggers Rail Act of 1980 That work documented some very specific changes in railroad management in response to the new environment Some of the changes were a decrease in the size of top executive management teams and greater decentralization of responsibilities more emphasis placed on marketing and sales with less on traditional operations orientation and more reliance on younger more educated managers with less industry experience Due to the implications of the rail research there was reason to believe that similar impacts may have been imposed during the deregulation of the motor carrier industry To analyze this effect on motor carrier management characteristics and structure would be very extensive so I will focus on the less-than-truckloadLTL segment of the industry The LTL segment is an appropriate area because the MCA led to a significant environmental change and upheaval within this segment 1 Before deregulation the government-sanctioned rate bureaus formed by LTL carriers in conjunction with the Interstate Commerce CommissionsICC restrictive entry 2 policies resulted in the absence of effective competition among LTL carriers Furthermore LTL customers whose shipments ranged from 70 to 10000 pounds had no feasible alternatives to LTL service Private carriage was not an option because many LTL dependent shippers had shipments that were considered too small and they did not move at regular intervals The US Postal Service and UPS were
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