Abstract
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 thirtythree. 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.
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 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 an among members of the organization,
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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.
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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 an be stabilized on a more personal and
informal basis with in creasing 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
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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
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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
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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.
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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.
(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.
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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. Therefore it will like to
(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.
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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.
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
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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.
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(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 SCOPE OF THE STUDY
Due to the nature of this research, it will not be feasible to study the
effect of organization.