CHAPTER ONE

INTRODUCTION

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 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

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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