ABSTRACT
This research examines Organizational
Structure as a Tool for Effective Management with special reference to Nigerian
Brewery Plc. The research adopted a survey research design. A well structured
questionnaire was designed and administered to respondents. A sample size of
One Hundred (100) was drawn from the population of study. The sampling was made
based on a simple random sampling technique.
The data gathered were presented in
tables and analysed with simple percentages. The hypothesis formulated was analysed
with the use of Chi-Square technique. It was concluded that - there is
significant relationship between organization structure and effective
management. Recommendations were proffered that allowing the organizational
structure of the company’s knowledge and information flow in all directions
increases performance of the organization. Also, organization structure should
be properly and carefully designed to meet with the needs of the organization,
employees and its environment.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 General Description of the Area Of Study
1.2 Statement of the Problem
1.3 Purpose of the Study
1.4 Relevant
Research Questions
1.5 Research Hypothesis
1.6 Scope
and Limitation of the Study
1.7 Significance
of the Research Study
1.8 Historical Background of the Study
1.9 Definition of Terms
References
CHAPTER
TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction
2.2 Conceptual
Framework
2.3 Current
Related Literature on Theories Postulated
2.4 Related
Literature Practical in the Nigerian Environment
2.5 Summary
of the Chapter
References
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Re-Statement
of Research Questions and Hypotheses
3.3 Research
Design
3.4 Data
Collection Methods
3.5 Characteristics
of the Study Population
3.6 Sampling Techniques/Methods and Sample Size
3.7 Description Data Collection Instrument
3.8 Administration
of the Data Collection Instruments
3.9 Validity
and Reliability of the Instrument Used
3.10 Method of Data Analysis
CHAPTER
FOUR: DATA ANALYSIS AND INTERPRETATION
4.1 Introduction
4.2 Respondents’ Characteristics and
Classification
4.3. Presentation
of Analysis of Data According to
Research Question
4.4 Presentation
and Analysis of Data According to Research Hypotheses
4.5 Discussion of Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of the Findings
5.2 Conclusion
5.3 Recommendations
5.4 Suggestions for Further Studies.
Bibliography
Appendix:
Questionnaire
CHAPTER ONE
INTRODUCTION
1.1
GENERAL DESCRIPTION OF THE AREA 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 formal, 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 and 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 input 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 a formal organizational structure. There is also need for a continual
receive of structure to ensure that it is the most appropriate form for the
particular organization, and in keeping with the growth and development there
is likely to be of particular importance for the way large organizations. 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 co-ordinating 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
No one thinks about an
organization's structure until something goes wrong and profits plummet or
customers complain. That's when reporting relationships, operational metrics
and business culture come under scrutiny. Proactive business leaders take the
time to analyze the organizational structure from the start and make sure it
facilitates efficient decision making.
Departmental conflict
occurs in many companies in Nigeria because there is no proper structure in
place. Company policies and procedures are not enforced, causing employee
dissension and confusion where there is no organization structure. Approvals
take longer because no one knows who is in charge when multiple departments
interact.
Lack of structure or an
inflexible structure can impede the work force from achieving desired results.
Additionally, poor communication among department leaders could filter down
into the rest of the organization.
This research work tends
to investigate the aforementioned problems and provide solutions and the end of
this work.
1.3
PURPOSE OF THE STUDY
This study is to examine the relationship
among some elements of organizational structure and management effectiveness in
Nigerian business organization. Therefore it will like to
(1) Identity
factors in the organizational structure that 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
RELEVANT RESEARCH QUESTIONS
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 affect managerial
effectiveness.
(2) is
there significant relationship between organization structure and effective
management
(3) Is
there a problem in the structural design of the departments within the
organization.
(4) To
what extent do the level of education of the subordinates influence the way a
manager structures his departments.
(5) What
is the link between the above variable and the managers degree of effectiveness
in meeting up to the objectives he is expected to achieve.
1.5 RESEARCH HYPOTHESIS
This hypothesis is formulated tentatively to
be tested during the course of this research
Ho: There
is no significant relationship between organization structure and effective
management
H1: There
is significant relationship between organization structure and effective
management
1.6
SCOPE AND LIMITATION OF THE STUDY
This research work examine the effect of
organisation structure on effective management with reference to Nigeria
Breweries Plc. The scope of the research only cover the Nigerian Breweries
Office in Lagos.
Some difficulties were noticed in getting
information listed in the project.
(a) Financial
Constraints
The cost involved in research project is very
high considering the state of the economy. The little amount of pocket money to
me by my parents is not sufficient enough to carry out a research project
extensively.
(b) Time
Constraints
The most important using to note is the time
limitation combining lectures, assignment and also coupled with term paper
makes getting materials for the research project difficult.
(c) Unavailability
of Textbooks and Journals
The information gathered in writing research
project must come from several textbooks and journal, but most of these
textbooks were 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
pf 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 problem for me considering the type of school environment.
Most data that should be gotten from the computer are not there because of the
lack of it.
1.7
SIGNIFICANCE OF THE RESEARCH 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.
1.8 HISTORICAL BACKGROUND OF THE STUDY
Nigerian Breweries Plc started operation in
Nigeria in 1953 but the company was incorporation as a private limited
liability company on 27 November 1951, to establish and operate factories for
the bottling of beer in Nigeria involving the famous star.
The company became a public company in 1972
with its shares listed on the Nigerian stock exchange.
At the incorporation of the company on 22
November 1951, 14 started operations first in Lagos State and Ibadan at
different dates, but today, the company has its branch network in fourteen (14)
major cities in the country. In that light Nigerian Breweries Plc 9th Mile
Branch, Enugu was established in 1975 to take care of business in Eastern
region.
At 31 December, 2004, the company had 7,695
employee nationwide comprising 570 in management and 7,125 in non-management
position, 13 of the staff were expatriates.
1.9 DEFINITAION OF TERMS
Organization
Structure: The typically hierarchical
arrangement
of lines
of authority,
communications,
rights
and duties
of an organization.
Boundaryless
organization: An organization
that seeks to eliminate the chain of command, have limitless spans of control,
and replace departments with empowered teams.
Bureaucracy:
An organizational design with highly
routine operating tasks achieved through specialization; formalized rules and
regulations; tasks that are grouped into functional departments; centralized
authority; narrow spans of control; and decision making that follows the chain
of command
Centralization: The degree to which decision making is
concentrated at a single point in the organization
Decentralization:
The degree to which decision making is
distributed to lower-level employees.
Delegation: Assignment of authority to another person to
carry out specific duties, allowing the employee to make some of the decisions
Departmentalization: The basis on which jobs are grouped together
Environment: Those institutions or forces outside the
organization that potentially affect the organization’s performance.
Formalization: The degree to which jobs within the
organization are standardized.
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