ABSTRACT
This study focused on the effects of organisational structure on management effectiveness of Michael Okpara University of Agriculture Umudike. Too much of government interference and lack of independence contributed to this study. The specific objectives were to: ascertain the effects of centralisation on strategic decision making, examine the effects of specialisation on goal attainment, evaluate the effects of formalisation on problem solving and find out the effects of departmentalisation on resource allocation in Michael Okpara University of Agriculture Umudike. The study adopted survey research design. The population of the study consists of both the academic and non-academic staff of Michael Okpara University of Agriculture Umudike. Multiple Regression analysis were used to analyze the study objectives. Findings revealed that: At 1% level (Sig < .01) of significance, centralisation of structure positively affects strategic decision making, at 1% level (Sig < .01) of significance, specialisation of structure positively affects goal attainment and at 1% level (Sig < .01) of significance, formalisation of structure positively affects problem solving in Michael Okpara University of Agriculture Umudike. The study concluded that the structure of Michael Okpara University of Agriculture Umudike have a significant and positive effect on their management effectiveness. However, the study recommended that: The management of Michael Okpara University of Agriculture Umudike need to relax the structure of the University to an extent and moderate the concentration of power on top management in the University. There is need to localise authority for decision-making and adopt employees participation in decision making, especially at collages and departmental levels, as these will encourage collective will and team spirit between management and staff in the University and will continually enhance the attainment of strategic decisions in the University.
TABLE OF CONTENTS
Title
Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table
of Contents vi
List
of Tables x
Abstract xi
CHAPTER 1: CHAPTER 1: INTRODUCTION
1.1
Background to the Study 1
1.2
Statement of the Problem 3
1.3
Objectives of the Study 5
1.4
Research Questions 6
1.5
Research Hypotheses 6
1.6
Significance of the Study 7
1.7
Scope and of the Study 8
1.8
Operational Definition of Terms 10
CHAPTER 2: REVIEW OF
RELATED LITERATURE
2.1
Conceptual Review 14
2.1.1 Organisational structure 14
2.1.2 Management
effectiveness 18
2.1.3 Types of organisational
structures 20
2.1.4 Dimensions of managerial effectiveness 38
2.1.5 The Design of organisational structure 39
2.1.6 Centralisation of organisational structure 41
2.1.7 Centralisation of organisational structure and
managerial performance 43
2.1.8 Centralisation of organisational structure and
managerial innovation 47
2.1.9 Specialisation
of organisational structure 49
2.1.10 Formalisation of organisational structure 54
2.1.11 Formalisation of organisational structure and
managerial innovation 58
2.1.12 Organisational structure of Michal Okpara university
of agriculture umudike 59
2.2 Empirical
Review 66
2.3 Conceptual
Framework of Organisational Structure and
Management
Effectiveness 72
2.4 Theoretical Review 73
2.4.1
The Contingency theory of
organisational structure 73
2.4.2
Mintzberg’s theories on organisational
configuration 76
2.4.3 Theory of mechanistic and organic systems of organization 77
2.4.3.1
Application of theory of mechanistic and organic systems of organization 80
2.5 Summary of Related Literature Reviewed 81
2.6 Gaps
in Literature Review 82
CHAPTER
3: RESEARCH METHODOLOGY
3.1 Research Design. 84
3.2 Population of the Study 84
3.3
Sources of Data
Collection 85
3.3.1 Primary
Source of Data 85
3.3.2 Secondary
Source of Data 85
3.4 Sample and Sampling Procedure 85
3.4.1 Sample
Size Determination 86
3.5 Validity of the Instruments 88
3.6 Reliability of the Instruments 89
3.7 Methods of Data Analysis 90
3.8 Model Specification 90
CHAPTER 4: DATA PRESENTATION AND ANALYSES
4.1
Data Presentation 93
4.2
Effect of Centralisation
on Strategic Decision Making in Michael Okpara
University
of Agriculture Umudike 94
4.3
Effect of Specialisation
on Goal Attainment in Michael Okpara University of
Agriculture
Umudike 97
4.4
Effect of Formalisation
on Problem Solving in Michael Okpara University of
4.5
Agriculture Umudike 99
4.6
Effect of
Departmentalisation on Resource Allocation in Michael Okpara
University
of Agriculture Umudike 101
4.7
Discussion of Findings 103
CHAPTER 5:SUMMARY OF
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1
Summary of Findings 105
5.2
Conclusion 105
5.3
Recommendations 106
References 108
LIST OF TABLES
3.1: Showing the target
population and sample size drawn from Michael Okpara
University
of Agriculture Umudike. 88
3.2: Showing
Coefficient of Correlation of the Reliability of the Research Instrument. 90
4.1: Showing the number of questionnaire
sampled to academic and non-academic
staff of Michael Okpara University of
Agriculture Umudike and the number that was returned. 93
4.2: Showing Multiple Regression analysis result on the effect of
centralisation on
strategic
decision making in Michael Okpara University of Agriculture Umudike. 94
4.3: Showing Multiple Regression analysis result on the effect of
specialisation on
goal
attainment in Michael Okpara University of Agriculture Umudike. 97
4.4: Showing Multiple Regression analysis result on the effect of
formalisation on
problem
solving in Michael Okpara University of Agriculture Umudike. 99
4.5: Showing Multiple Regression analysis result on the effect of
departmentalisation
on
resource allocation in Michael Okpara University of Agriculture Umudike. 101
CHAPTER 1
INTRODUCTION
1.1
BACKGROUND
TO THE STUDY
Instituting and sustaining effective organisational
structure in Universities are sine qua
non to management effectiveness and administrative proficiency. The
formation of organisational structures, which make cross-functional knowledge
and resource sharing possible, is a critical element for organisations;
ensuring strategic decision-making, the resolution of disagreements, and the
active and effective coordination of the process of innovation (Olson, Walker,
& Ruekert cited in Faruk &
Gary, 2016). Child (2005), posits that the purpose of structure is to
contribute to the successful implementation of objectives by allocating people
and resources to necessary tasks and design responsibility and authority for
their control and coordination. This assertion underscores the position that
the structure of an organisation affects not only performance and economic
efficiency, but also the morale and job satisfaction of the work force (Ezigbo,
2011). In the submission of Wolf (2002), structure does not only shape the
competence of the organisation, but also the processes that shape performance. Drucker
cited in Sampson, Mirilla and Emerole
(2016), asserts that good organisational structure does not by itself
produce good performance, but a poor organisational structure makes good
performance impossible, no matter how good the individual managers may be.
Therefore, the abilities of managers to combine and use different management
tools and techniques; communication technologies, resources, action,
performance feedback, boundary spanning, change and innovation in providing
different kinds of assistance to employees along structural lines is the locus of
managerial effectiveness, it is only permissible within effective
organisational structure. Thus, managerial
effectiveness will be elusive in the absence of effective organisational structure
especially in Universities.
The
organisational structure in Nigerian Universities are complex due to their
fragmentation, participatory in decision–making, centralisation of authority
and high level of formalisation (Widluastati,
2012). The prominent actors in the Nigerian Universities organisation
structure are the Visitor who is the Head of State or the Head of
Government that established it. He usually come to grace the convocation
ceremonies where he uses the occasion to address the academic communities on
matters of the moment (Adegbite, 2007). The second is the Chancellor, who is
the titular head of the University, who by law, in relation to the University,
takes precedence before all other members of the University, and when he is
present, presides at all meetings of the convocation held for conferring
degrees. The apex management structure within each University is the Governing
Council, headed by the Chairman (Pro-Chancellor) which is charged with the
administrative functions in the areas of goal setting, policy formulation,
staff development, general discipline, budget approval and liaison activities
with the government. Ibukun cited in
Ajayi & Ekundayo (2010), posited that the main organ regulating the
internal academic activities of the Universities is the Senate, headed by the
Vice-Chancellor. Other members are: Deputy Vice–Chancellor(s),
the Registrar, Bursar, University Librarian, Director of Works,
Director of Physical Planning and Development, Director of Academic Planning
and Control, Deans of Faculties, Head of Departments. The Senate
regulates the academic activities of the University following the general
guidelines provided by the NUC. Mgbekem (2004), opined that the Universities in
Nigeria are run through committee system which are either responsible to the
Council or the Senate, among these committees are: Finance and general purpose
committee, development committee, appointments and promotion committee,
academic planning committee, among others.
Michael
Okpara University of Agriculture Umudike (MOUAU) like other Nigerian
Universities is a complex institution with multifaceted structures and webs of
relationship. The ultimate aim of MOUAU is
to accomplish its set goals and objectives. However, the attainment of these
noble goals and objectives seems to be jeopardised by the administrative
structures put in place by the University management. Currently, MOUAU
administration is based on participatory system of Senate and various
committees, however, their direction and undertakings are not devoid of interference
by government of the day and notable stakeholders which may be at variance to changing
national circumstances and the dynamism inherent in academic environment.
Hence, this might undermine their continuous proficiency in an increasingly
competitive and globalised academic world. Thus, MOUAU may
work best in a structure that establishes and delineate relationships between
colleges and when communication among governing council, the administration,
and colleges are regular, open and unmediated. To this end, the
need to align these web of relationship and authorities inherent in MOUAU into a
structure that will ensure managerial effectiveness in accordance with global
transformations and best practices is a top priority not only to MOUAU
management but also to all relevant stakeholders and MOUAU community. Therefore,
the need for this study: Effects of organisational structure on management
effectiveness of Michael Okpara University of Agriculture Umudike, Nigeria.
1.2
STATEMENT OF THE PROBLEM
Universities structure needs to be
efficient, effective, flexible, innovative, fast-cycled, responsive, and
aligned to current dynamism rocking the globe. However, University environment
has become increasingly uncertain and unpredictable. The emergence of a more
responsive University management is slow both at the federal and state level.
Clark (2001), attributed this to the limits of government funding capability
combined with rigid internal organisational structures. Also, Research has
shown that government often interferes in the affairs of the University,
especially in the selection of the Vice-chancellors. A situation whereby the
members of the University are not totally free to choose their head without
government interference may not augur well for the University system and
structure. Where this situation is not free, then the governance of the system
will still depend on external influence, which will erodes the structural framework
of the University and inhibit managerial effectiveness by rendering the hierarchies
passive. In the words of Adegbite (2007), there is an erosion of the statutory
functions of the vice-chancellors by the chancellors and Pro-chancellors as
some of them now decide to stay permanently in their offices on Campus seeing
to the day-to-day administration of some Universities, and some union officials
prefer to see them on issues relating to the internal governance of the
University rather than the Vice-chancellor or designated officials, by so doing
causing structural crisis.
Michael Okpara University of
Agriculture Umudike is not immuneed to the above scenarios. However, it is a recognized fact that conserving the autonomy of higher
educational institutions is essential in protecting academic freedom, the
advancement of knowledge and the pursuit of truth (Ogbogu, 2011). This is only
attainable in a systematic structure that precisely delineate chains of command
and responsibilities, devoid of undue interference from both internal and
external stakeholders. Furthermore, organisations with traditional structures
without modification would be doomed to death like dinosaurs that could not
match themselves with her environment. Michael Okpara University of Agriculture Umudike
structure is complex due to their centralisation of
authority, high level of specialisation,
formalisation and departmentalisation,
Therefore, there is need to empirically evaluate how these structural
components have affected managerial effectiveness in terms of strategic
decision making, problem solving, resource allocation and goal attainment of the
University for proper modification or
otherwise. This is imperative in order to reposition
these institutions towards becoming efficient and self-sufficient, aligning
with global best performing institutions of higher learning and producing
qualified graduates that are universally competent and equipped to contribute
to the economic development of the state. Drawing from the above, the study: Effects
of organisational structure on management effectiveness of Michael Okpara
University of Agriculture Umudike, Nigeria was initiated.
1.3
OBJECTIVES OF THE STUDY
The broad objective of this study is to
evaluate the effects of organisational structure on
management effectiveness of Michael Okpara University of Agriculture Umudike.
The specific objectives are to:
i.
ascertain
the effect of centralisation (concentration of power, localising
of authority for decision-making, participation in decision) on strategic decision making in Michael
Okpara University of Agriculture Umudike.
ii.
examine
the effect of specialisation (division of labour, team
structure, cross-functional structure, collaboration of tasks) on goal attainment in Michael Okpara
University of Agriculture Umudike.
iii.
evaluate
the effect of formalisation (procedures, rules and
roles, transmission of decisions, instructions and information) on problem solving in Michael Okpara
University of Agriculture Umudike.
iv.
find
out the effect of departmentalisation (grouping of
activities, specialist and disciplines) on resource allocation in Michael Okpara University of
Agriculture Umudike.
1.4
RESEARCH QUESTIONS
The following research questions were answered
by this study:
i.
What
are the effect of centralisation (concentration of power, localising of authority for decision-making, participation in
decision) on strategic decision
making Michael Okpara University of Agriculture Umudike?
ii.
How
does specialisation (division of labour, team structure,
cross-functional structure, collaboration of tasks) affect goal attainment in Michael Okpara University
of Agriculture Umudike?
iii.
What
are the effect of formalisation (procedures, rules and
roles, transmission of decisions, instructions and information) on problem solving in Michael Okpara
University of Agriculture Umudike?
iv.
How
does departmentalisation (grouping of activities,
specialist and disciplines)
affect resource allocation in Michael Okpara University of Agriculture Umudike?
1.5
RESEARCH HYPOTHESES
The following hypotheses were tested in null
form:
HO1:
Centralisation (concentration of power, localising of
authority for decision-making, participation in decision) have no significant effects on strategic
decision making in Michael Okpara University of Agriculture Umudike.
HO2:
Specialisation (division of labour, team structure,
cross-functional structure, collaboration of tasks) does not have any significant effects on goal
attainment in Michael Okpara University of Agriculture Umudike.
HO3:
Formalisation (procedures, rules and roles,
transmission of decisions, instructions and information) have no significant effects on problem solving in
Michael Okpara University of Agriculture Umudike.
HO4:
Departmentalisation (grouping of activities, specialist
and disciplines) does not have
any significant effects on resource allocation in Michael Okpara University of
Agriculture Umudike.
1.6
SIGNIFICANCE OF THE STUDY
Theoretically, the
study findings will also be of great importance to other Universities and
institutions of higher learning within and outside the country. It will help
them to embark on an honest appraisal of their structural arrangement so as to
minimize the inefficiency inherent in the structure while maximizing their
management effectiveness and institutional goal attainment. Furthermore, the
study designed a conceptual framework that delineate on the effect of
organisational structure on managerial effectiveness, specifying their
variables and contextual factors which will aid to the understanding of the
construct and will be a useful guide to students and potential researchers
embarking on research in similar topics. The study will also add to the scholarly
material available on the research topic
Empirically, the findings
of the study will be of utmost significance to the Michael Okpara University of
Agriculture Umudike. The findings of the study and recommendations will help
the MOUAU to align and realign their internal and external structures to be in
congruence and in conformity with the culture, strategies, mission and vision
statement of the institution while adapting to the dynamism inherent in the
external and internal environment and augmenting managerial effectiveness. The
study findings will illuminate on how the structural
components of MOUAU: centralisation of authority, specialisation, formalisation and departmentalisation has
affected managerial effectiveness in terms of strategic decision
making/planning, problem solving, resource allocation and goal attainment of
MOUAU. The study findings will also makes glaring factors inherent in the
institution’s structure that are positively and negatively influencing
managerial effectiveness in the institution so as to mitigate the negative
variables and optimise the efficiency of
the positive variables towards enhancing managerial effectiveness and
institutional goal attainments.
On the part of the
academic and non-academic staff of MOUAU, the findings will help them to be
conversant with the pattern of relationship among positions in the institutions
and among members of the institutions, it will also help them to know how
activities such as task and resource allocation, coordination and supervision
are directed towards the attainment of institutional goals and objectives, and
how power and responsibilities are assigned, controlled, coordinated, and how
information flows between the different levels of management. Being acquainted
with these knowledge will help them to know who and where to report, which will
increase their efficiency, improve institutional goal attainments and reduce
structural crises emanating from stakeholders’ interference.
1.7
SCOPE OF THE STUDY
This
research focused on the effects of organisational structure on management
effectiveness of Michael Okpara University of Agriculture Umudike.
Unit
scope
The target population of the
study were all the senior and managerial staff, academic staff and non-academic
staff of Michael Okpara University of Agriculture Umudike.
Content
scope
The
study focused its main interest on how structural components of Michael Okpara
University of Agriculture Umudike: centralisation of
authority, specialisation, formalisation and departmentalisation
has affected managerial effectiveness in terms of strategic decision making,
problem solving, resource allocation and goal attainment in the University.
Geographical
scope
The
study will be conducted in Abia State. Abia State is an abbreviation of four of
the state’s densely populated regions Aba, Bende, Isuikwuato and Afikpo. It is
one of the thirty-six (36) states that constitute the Federal Republic of
Nigeria. Aba people are of the Igbo ethnic group who predominates much of the
south-eastern part of Nigeria. Their traditional language is Igbo. English is
widely spoken and serves as the official language in governance and business.
Abia is 2.4mm people are mainly Christians. Abia state consists of seventeen
(17) Local Government Areas. They are: Aba north, Aba south, Arochukwu, Bende,
Ikwuano, IsialaNgwa North, IsialaNgwa South, Isuikwuato, Obingwa, Ohafia,
OsisiomaNgwa, ugwunagbo, Ukwa, East, Ukwa West, Umuahia North, Umuahia South,
Umunneochi.
Abia
State, which occupies about 5,834 square kilometers. The southern part of the
state lies within the riverine part of Nigeria. It is low-lying tropical rain
forest with some oil-palm brush. The southern portion gets heavy rainfall of
about 2,400 millimetres (941n) per year especially intense between the months
of April through October. The rest of the state is moderately high plain and
wooded savannah. Crude oil and gas production is also a prominent activity, as
it contributes to 39% of the GDP. The manufacturing sector only account for 2%
of the GDP. Agriculture, which employs 70% of the second economic sector of
Abia with its adequate seasonal rainfall, Abia has much arable land that
produces yam, maize, potatoes, rice, cashews, plantains, karo and cassava. It
is in this environment that Michael Okpara University of Agriculture Umudike
located.
The
major limitation encountered by the researcher is respondent apathy. The
researcher was surprised that many staff of the University did not want to
participate in the study despite that one of the major functions of
Universities is research. Thus, convincing the staff of Michael Okpara
University of Agriculture Umudike to participate in the study was a difficult
task and very challenging. However, the researcher was able to overcome these
challenges to ensure that the sturdy was completed.
1.8
OPERATIONAL DEFINITION OF TERMS
The
followings are the operational definition of terms in this study:
Centralisation:
Centralisation refers to how
organisational decisions are made at the top. It involves concentration of
power, localising of authority for decision-making, extent of participation in
decision as it is the case in Michael Okpara University of Agriculture Umudike.
Departmentalisation:
Departmentalisation means the process of
grouping activities into departments, specialist and disciplines as we have in
Michael Okpara University of Agriculture Umudike.
Effectiveness: Effectiveness
is the capability of producing a desired result or the ability to produce desired
output. When something is deemed effective, it means it has an intended or
expected outcome, or produces are achieved. It measures the degree to which
institutions achieves its goals or the way outputs interact with the economic
and social environment. In relation to the study, effectiveness of these
institutions involves becoming efficient and self-sufficient, aligning with
global best performing institutions of higher learning and producing qualified
graduates that are universally competent and equipped to contribute to the
economic development of the state.
Formalisation:
Formalisation refers to the process which
managers specify procedures, rules and roles, transmission of decisions,
instructions and information in Michael Okpara University of Agriculture
Umudike.
Goal
attainment: Goal attainment refers to the
abilities of management to achieved desired goals and objectives as enshrine
the mission and vision statements of Michael Okpara University of Agriculture
Umudike.
Management effectiveness:
Managerial effectiveness is a manager’s ability to achieve desired results or
output. How well he applies his skills and abilities in guiding and directing
others towards institutional goal attainment. It can also be seen as a manager’s
ability to use different management tools, techniques, human and material
resources towards institutional goal attainment. Management effectiveness in
the study are measured by effectiveness of both institutions management in strategic
decision making/planning, problem solving, resource allocation and goal
attainment.
Management: Management
is the administration of an organisation. They are saddled with the
responsibility of coordinating the affaires and activities of the institution
towards its stated goals attainment. Management in relation to the study
includes: The Pro-Chancellor, Vice-Chancellor, Deputy
Vice–Chancellor(s), Registrar,
Bursar, University Librarian, Director of Works, Director of Physical Planning
and Development, Director of Academic Planning and Control, Deans of Faculties,
Head of Departments among others.
Organisation: An
organisation are established institution as a means of achieving defined
objectives, it design specifies how goals are subdivided and reflected in the
subdivisions of the organiusation for proper coordination and goal
accomplishment. The organisations under consideration in this study are Michael
Okpara University of Agriculture Umudike.
Organisational structure: Organisation structure is the pattern of relationship
among positions in the organisation and among members of the organisation, it
defines how activities such as task allocation, coordination and supervision
are directed towards the attainment of organisational goals and objectives. It
determines how the roles, power and responsibilities are assigned, controlled,
and coordinated, and how information flows between the different levels of
management. Organisational structure in this study are measured by organisational
structure components: centralization, specialisation, formalisation and departmentalisation.
Problem
solving: Problem solving encompasses decision
making, finding and formulating the problem, implementing decisions, audit and
review of achieved results as been practiced in Michael Okpara University of
Agriculture Umudike .
Resource
allocation: Resource allocation refers to the process of assigning and managing
assets in a manner that supports Michael Okpara University
of Agriculture Umudike , strategic goals attainment by the institutions
management.
Specialisation:
Specialisation refers to the degree to
which an organisation divides tasks into separate jobs. It encompasses division
of labour, team structure, cross-functional structure, collaboration of tasks
as are present in Michael Okpara University of Agriculture , Umudike.
Strategic
decision making/planning: Strategic decision
making/planning is the management ability in charting a course based on
long-term goals and long term vision of Michael Okpara University of
Agriculture Umudike and achieving them.
Universities: A
University is an institution of higher education and research which award
academic degrees in various academic discipline. Universities under
consideration in the study are: Michael Okpara University of Agriculture
Umudike.
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