THE IMPACT OF ORGANIZATIONAL STRUCTURE IN EFFECTIVE MANAGEMENT OF NIGERIAN ORGANIZATION (A STUDY OF NIGERIAN BREWERY PLC, ENUGU)
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Study Level: BTech, BSc, BEng, BA, HND, ND or NCE
The topic of this study is Impact of Organizational Structure in Effective Management of Nigerian Organization (A study of Nigerian Brewery Plc, Enugu State). The researcher adopted the descriptive survey design. The researcher used both the primary, and secondary sources of Data in the course of the study. The primary data was sourced through the instrument of questionnaire and oral interview while secondary data was sourced through texts books, magazines, journals and internet. The Population of the study is eight hundred and ninety while the sample size is one hundred and thirty-three. This research work was conducted to find out the impact of organizational structure on managerial effectiveness of a named organization. This research work on the chosen topic was deemed necessary by the researcher in view of the conclusion reached by several schools of through on management that the way an organization is operationally structured could make or mar organization in the achievement is its objectives. The researcher in the course of the work, administered some structured questionnaire to critical office of the establishment, aimed at eliciting useful information. This was complemented by view of related literature on the subject including study of the organizational structure in the establishment. Arising from the above exercise, the researcher was able to discover among others.
- There is weak organizational structure in the establishment studies because the organizational structure in place are not well spelt out as many functional frameworks were not represented on the structure.
- There was also apparent lack of adequate knowledge and understanding by most staff of the establishments on the structural arrangements and this breeds conflicts in communication channels.
- That the lack understanding of the organizations structure arrangement contributed to lack of policy and organizational manuals.
In the view of the fact that the above lapses were found to be seriously militating the achievement of the organizational goals, it was then recommended, thus;
- That the organizational structure currently in place in the establishment should be reviewed and redesigned to include all functional frameworks hitherto not represented.
- Then the above (1) should be backed up by policy and organizational manual.
- Proper induction conducted for employers of the establishment on the need for adherence to the organizational structure and reportorial relative ties.
The findings revealed among others that organizational structure has a great impact in the effective management of organizations. The researcher recommended among others that organizations should endeavour to have well structured organization, in order to achieve the set up objectives.
TABLE OF CONTENTS
Title page i
Table of content vii
1.1 Background of the study 1
1.2 Statement of the problem 9
1.3 Objectives of the study 10
1.4 Research questions 11
1.5 Significance of the study 12
1.6 Limitation of the study 12
1.7 Scope of the study 14
1.8 Definition of terms 14
REVIEW OF RELATED LITERATURE 16
2.1 Theoretical framework 16
2.2 Historical background 17
2.3 Current Literature on theories Postulated 20
2.4 Determinants of organizational structure 39
2.5 Effects of different organizations structure 40
2.6 Consequence of structural deficiencies 42
2.7 Organization chart 44
2.8 Limitations of organization charts 45
RESEARCH METHODOLOGY 47
3.1 Research Design 47
3.2 Sources of data 47
3.2.1 Primary sources 47
3.2.2 Secondary sources of data 48
3.3 The population of study 48
3.4 Sample design and determination of sample size 48
3.5 Method of data collection 51
3.5.1 Questionnaire design 52
3.5.2 Secondary method of data collection 52
3.6 Method of data presentation and analysis 52
DATA PRESENTATION AND ANALYSIS 53
4.1 Data presentation 53
4.1.1 Demographics characteristics 53
4.2 Presentation according to key research question 54
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION 62
5.1 Summary of findings 62
5.2 Conclusion 63
5.3 Recommendations 64
1.1 BACKGROUND OF STUDY
The purpose of structure is the division of work among members of the organization, and the Co-ordination of their activities so they are directed towards the goals and objectives of the organization.
An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to some one common aim. Organizations are a number of clustered entities the structure of an organization is usually set up in one of a variety of style dependent on their objectives and ambiance the structure of an organization will determine the modes in which it shall operate and will perform.
Organization structure allows the expressed allocation of responsibilities for different entities ordinary description of such entities is as branch, site, department, workgroup, and single people. An organizations structure is the set of the planned relationships between the physical factors and personal required for the performance at these function.
In the words of Mullins ( 2007:564). Organization structure is the pattern of relationship among positions in the organization an among members of the organization, organizational structures make possible the application of the process of management and creates a frame work of order and command through which the activities of the organization be planned, organized, directed and controlled. He went further to say that organizational structure define tasks and responsibilities, work roles relationships and channels communication.
Organizational structure is primarily set up for the purpose of promoting co-operation and facilitating the exercise of executive leadership.
It permit the relation of co-coordinated thought and action even though organizational relationship become more complete with growth.
Birkinshaw (2001:75) said that organizational structure is never the whole story, it is just a way of dividing responsibilities among executive. It is meaningless unless supported appropriate systems and a consistent culture.
However organization structure is still surprisingly informative about strategic priorities and the work going on, so it is as good a place to start as any” the type of organization structure depend on the nature of that particular organization. The form which the organizations structure take may be are presented pictorially by an organization chart. The chart is useful since it aids in locating properly either positions or functions and it shows the lines of responsibility authority and accountability.
Organizational structure shall be adaptive to process requirement aiming to optimize the ratio at effort and in put to output. In effective organization structure shall facility working relationship between various entities in the organizational units. Organizations shall support commands for coping with a mix of orders and a change of conditions while performing works.
Organization structure is clearly important for any organization there are likely to be fewer problem of structure the distribution of task, the definition of authority and responsibility and the relationship between members of the organization can be stabilized on a more personal and informal basis with increasing size, however, there is greater need for a carefully designed and purposeful form organization there is need for aformal organizational structure.
It is pertinent for the continuation of the structure so as to ensure that it is the most appropriate form for the organization, growth and development is as well very vital for the survival of the organization.
In the words Drucker (1999:11) it is the correct design of structure that is of most significance in determining organizational performance. He further explained that good organization structure does not by itself produce good performance. But a poor organization structure makes good performance impossible, no matter how good the individual managers may be. Coming to the task that structure in the present day organization presents complex relationship, there is the need for people to organize their efforts. Hence organization structure defines the format of allocation of work roles to identify the members of the organization. It establishes the line of authority for integrating and co-coordinating activities.
We can therefore describe functional structure in terms of dividing tasks, jobs and delegating authority thus this provides some aspect of major challenges faced by management. Management is expected to make the appropriate analysis that will help in the designing of an effective organizational structure for any organization. A sound organizational structure activities are directed towards co-ordinating and controlling the overall outset of an organization and its members. Therefore it becomes a sanctioned network of interaction and relationships between positions, functions and occupants and also a means through which management attempt to achieve organizational goals. This emphasizes the fact the structure is the result from organizational design. Thus, it is far from surprise that it has been the subject of intensive study. All organizations have some form of more or less formalized structure which has been defined by Child (1997:284) as comprising all the tangible and regularly occurring features which help to shape their member’s behaviour”. Structures incorporate a network of roles and relationships that collective effort is explicitly
organized to achieve specified ends. The structure of an organization can be regarded as a framework for getting things done. It consists of units, function, division, department and formally constituted work teams unto which activities related to particular processes, projects, products markets, customer, geographical areas or professional disciplines are grouped together. The structure indicates who is accountable for directing coordinating and carrying out these activities and defines management hierarchies. The chain of command – thus spelling out, broadly, who is responsible to whom for what and each level in the organization. The classical theorist passed the idea of one best way of structuring an organization effectively. Unfortunately the answer provided by the decades of systematic research has proved that this notion is impossible because organizations form wide range of internal and external conditions that there cannot be a single structure or design that will prove successful for all. This idea has been confirmed by the modern theorists stating that the best organizational structure is the one that works for the firm’s situation that moment. As this basic fact have become increasingly apparent, a new perspective on organizational design known as the contingency approach has taken form. People and environment in the above factor function with the key dimensions of organization structure which includes department, chain of command, span of control and centralization. The above facts present a lot of challenges for modern managers. For the purpose of this project research work, structural designment should plan the organization structure to suit with the organization’s goals in both implicit and explicit manner, and to understand the foreign factors of nature, models, dimensional level, determinant variables and the classification of structure which will bring efficiency and effectiveness in all levels.
Firms wishing to slow their entire organizational set up usually do so by preparing a company manual containing policy and objective chart for major and minor organizational units. Job descriptions and specifications and standard procedures.
Their portion of the structure presented in the chart shows two types of dimensions. The first is the Verticut dimension which is cut into a number of levels of authority known as service levels. The second is the horizontal dimension which is cut into functions or groups of functions. The structure of an organization affects not only productivity and economic efficiency but also the morale and job satisfaction of the workforce. Getting the structure right is the first step in organizational days.
Structure should be designed, therefore, so as to encourage the willing participation of members of the organization and effective organizational performance.
1.2 STATEMENT OF THE PROBLEM
An organizational structure is primarily set up for the purpose of promoting co-operation and facilitating the exercise of executive leadership. It permits the retention of co-ordinated thought and action every though organizational relationship become more complex with growth.
Mooney Jr. (2001.75) said that organizational structure is never the whole story. It is just a way of dividing responsibility among executives.
Organizational structure is meaningless unless supported by appropriate systems and a consistent culture. However, organizational structure is still surprising information about strategic priorities and the work going on, so its as good as place to start as anytime.
The type of organizational structure depends on the nature of the particular organization.
The form which the organizational structure takes may be represented periodically by an organizational chart. Based, on the significant of the organization structure the researcher wish to investigate more on the impact of organizational structure in effective management of Nigerian organization.
1.3 OBJECTIVE OF THE STUDY
This study is to examine the relationship among some elements of organizational structure and management effectiveness in Nigerian business organization.
(1) Identity factors in the organizational structure the could affect managerial effectiveness.
(2) To determine whether there is a problem in the structural design of the departments within the organization.
(3) To find out if the level of education of subordinates influence the way a major structure is department.
(4) To identity the links between the above variable and the manager’s degree of effectiveness in meeting up to the objectives he is expected to achieve.
(5) Determine whether these variables have the same or different affects or managerial effectiveness in the different department.
1.4 RESEARCH QUESTION
On every research project there should be questions which will enable the project to be realistic. The questions are as follows:
(1) What are the factors in the organizational structure that could affectmanagerial effectiveness?
(2) Is there a problem in the structural design of the departments withinthe organization?
(3) To what extent do the level of education of the subordinates influencethe way a manager structures his departments?
(4) What is the link between the above variable and the managers degreeof effectiveness in meeting up to the objectives he is expected to achieve?
(5) Can managerial skills influence organizational structure.
1.5 SIGNIFICANCE OF THE STUDY
Proper organizational structure in the organization will reduce role conflicts and avoid stress to managers, it will also specify span of control. It will encourage job specialization in the organization and easy job analysis the research will also help management during job evaluation and performance appraisal. The study will help many corporate organizations and government institutions to know what type of structure will suit then end help them to manage the organization effectiveness.
1.6 LIMITATION OF THE STUDY
Some difficulties were noticed in getting information listed in the
(a) Financial Constraints:
The cost involved in research project is very high consideringthe state of the economy. The little amount of pocket money tome by my parents is not sufficient enough to carry out aresearch project extensively.
(b) Time Constraints:
The most important using to note is the time limitationcombining lectures, assignment and also coupled with termpaper makes getting materials for the research project difficult.
(c) Unavailability of Textbooks and Journals:
The information gathered in writing research project must comefrom several textbooks and journal, but most of these textbookswere hard to find and the ones found were outdated editions.
(d) Secrecy of Information:
Most of the information used in this research work were gotten from the case study. Due to principles of the organization, some information where utilized. Some were disclosed after much persistence.
(e) Lack of research skill:
Being the first time I’m writing a research project, I lack the skill required to go about a research project.
(f) Lack of data storage and retrieval budgets:
Getting access to computers connected to the internal is a big problemfor me considering the type of school environment. Most data thatshould be gotten from the computer are not there because of the lackof it.
1.7 SCOPE OF THE STUDY
The researcher focus her attention on the Nigerian Brewery Enugu where she did a thorough research on the impact of the organizational structure in effective management of Nigeria organizations.
1.8 DEFINITION OF TERMS
In the word of Mullins (2007:567) organizational structure is the pattern of relationship among positions in the organization, organizational structure make possible the application of the process of management and creates a frame work of order and command through which the activities of the organization be planned organized, directed and controlled.
Donnely Jr. (1975) define management as activities undertaken by one or more persons in order to co-ordinate the activities of other in the pursuit of ends, which could not be achieved by one person.
An organization is therefore a group of people that come together to produce unity of action for the achievement of pre-determined objectives.
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