CHAPTER
1
INTRODUCTION
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 a formal 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 affect managerial effectiveness?
(2) Is there a problem in the structural design of the
departments within the organization?
(3) To what extent do the level of education of the
subordinates influence the way a manager structures his departments?
(4) 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?
(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
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
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 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 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
ORGANIZATIONAL
STRUCTURE:
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.
MANAGEMENT:
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.
ORGANIZATION:
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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