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This research work focuses on effects of organization structure on employees’ performance (a case study of First Bank Plc.). The objective of this study is to determine whether there is appropriate organisational structure in First Bank Nigeria and the extent it has contributed to their employees’ performances. The investigation was carried out with the use of questionnaire to gather information from the members of First bank plc. A number of 150 (fifty) questionnaires were distributed and analysed. This study used descriptive type of survey design and structured questionnaire was used to generate data. Descriptive statistics, correlation and t-statistics, was adopted for analysis of data and hypotheses testing. The result revealed that there is a significant impact of effective organization structure on workers performance and effective organization structure affects the performance of workers. It is recommended that having an organizational structure in place is very important for any organization; better communication and transparency is recommended.
1.1 Background of Study
In modern society, most people spend their working lives in an organization of some sort; therefore have first-hand experience of the corporate life. This study considers some of the findings and work that help to provide a better understanding of the nature of organizations which also includes the examination of the structural aspects of an organization and how it impacts on the performance of employees in an organization.
An organization is a collection of interacting and independent individuals who work towards common goals and whose relationship are determined according to a certain structure.
Arnold et al. (1998), this definition provides a useful starting point for an examination of organizations. The organization design is the overall arrangement of the various roles, processes and their relationships in the organization. It is a means to accomplishing the overall goal. The structure is not an end itself.
Performances of employees are based on the influence of some factors (motivations) which are as follows:
· Clarity Of Goals And Duties: Employees of Nigeria LNG Ltd are motivated due to the clarity of goals and objectives of the company in which everybody knows what the term is working towards and what he can contribute If the objective and goals are stated, it will be easy to select an organization most relevant actions for achieving such goals are objectives.
· Individual Consideration: When assigning adequate measures or safeguards for management control, variation in individual ability are considered.
· Flexibility Consideration: The organization structure of the company is flexible which has accommodated changes that may occur during the firm activities.
· Unity in Command: Each employee report and responsible to only superior at any point in time for each or all the functions he performs. No employee is subjected to orders from more than one source.
· Span of Control: The Span of control in the sense that the number of workers supervised by and reporting to an officer at any point in time is reasonable. At the organization, the number of subordinates reporting to an executive is between 4 and 6 while 20 at bottom level.
· Adequate Resources: For a useful organization structures adequate resources must be made available for each person to undertake his assigned ‘task successfully.
· Evaluation Criteria: There are known criteria and standards for measuring and appraising individual and departmental performance.
· Availability of Systems to Manage Staff Training and Performance: This is another factor that motivates staff of Nigeria Liquefied Natural Gas Ltd to perform effectively. For efficiency and increase in performance there must be well-defined processes for defining, creating, capturing and acting on knowledge. Training and development programs have enhanced staff of Nigeria LNG ltd performance. Therefore, employees of Nigeria LNG ltd have been motivated by the system in place for staff training program.
The non-motivation of staff performance could be that if the provision of environment for learning and development is not conducive, it will affect staff performance and which will bring low productivity in the organization. Therefore, environmental condition should be considered.
1.2 Statement of Problem
Various aspect of effective organization structure mentioned above where examined in the works of management scientist theorist Henry Fayol (1980), produced series of publications concerned with the structure of organization, power and authority within them.
The structure of an organization could have adverse influence on the provision of conducive environment for learning and performance of skills. There are various forces that bring about changes in an organization design, such driving forces cause dramatic changes which can influence the effective conduct of business. Though, these designs are used organization-Wide for various teams in an organization.
The problem associated with impact of effective organization structure on, employees’ performance ate significant issues and this has generated opinions. Workers or employees of Nigeria Liquefied Natural Gas Ltd quit their present working place because of lack of proper working environment, fixtures and this have gone a long way to affect the productivity of such employees and invariably affected the turnover of the organization.
The dissatisfaction of these employees on their job have made them go looking for job in some other organization where they think that better provisions are made for these variables lacking in their former workplace(s).
Moreover, because of improper positioning or location of plant/building, the employees work under stress and these have affected their health and productivity adversely. This study is therefore designed to look into the impact of effective organization structure on employees’ performance.
1.3 Objectives of the Study
The purpose and the objectives of this research work are:
1. To establish the effect of number of layers in the organizational hierarchy on the performance of workers in First Bank Plc. Nigeria.
2. To determine the effect of nature of formalization on the performance of First Bank Plc. workers in Nigeria.
3. To investigate the effect of loose internal and external boundaries on the performance of First Bank Plc. workers Nigeria.
1.4 Research Question
In the preparation of the research question, organizing the interview and collection of data that will be used in the hypothesis of the study, the following broad – based questions were established.
1. To what extent does the number of layers in the organizational structure affect the performance of workers of First Bank Plc. Nigeria?
2. What is the effect of nature of formalization on the performance of First Bank Plc. workers Nigeria?
3. To what extent does a loose internal and external boundary affect the performance of First Bank Plc. workers Nigeria?
1.5 Research Hypothesis
The study intends to test the following hypotheses:
Ho1: Organizational structure does not have significant effect on the performance of First Bank Plc. Nigeria.
Ho2: Nature of formalization does not have significant effect on the performance of First Bank Plc. Nigeria.
Ho3:A loose internal and external boundary does not have significant effect on the performance of First Bank Plc. Nigeria.
1.6 Significance of the Study
According to Armstrong (2001), ‘Strategic HRD aims to produce a coherent and comprehensive framework for developing people’. Much of this process will be geared towards the provision of an environment in which employees are encouraged to learn and perform. The effective structure of an organization is the framework for getting things done, for things to get done profitably, this framework must.be such that staff performance is encouraged with room to grow for the willing staff.
However, Mr Kingsley Consultant (Thewerkauf 1991) observed that times are changing and the law of average no longer applies always. It was a biter reality and it is being experienced by many large corporations, firms today as they grapple with organizational complexity generated by-product and functions. The result of the previous research work shows that the researcher used regression analysis.’ But this study will use Chi-square statistics method to analyse the impact of effective organization structure on employees’ performance, using the organization structure of Nigeria Liquefied Natural Gas Limited with respect to its staff performance as a case study. This research will also provide a better Understanding, an insight into the relationship between the effective structure of a firm and its method of staff performance.
1.7 Scope and Limitation of the Study
There are difficulties encountered due to financial and time constraints. The research was not done extensively but has been limited to just one organization hence it cannot be a complete representation of the entire corporate sector nor give a concrete / totally complete view of the subject matter. It can only be used to give an insight into the subject. It is hoped that the render would consult other literatures to enable him or her have a better understanding of the subject. A lot of research still needs to be done by considering many more organizations which would be a better representation of the corporate sector.
1.8 Definition of Terms
§ Flexible Organization: This may be organized along the lines with core workers carrying out the fundamental and continuing activities of the organization while the contract staffs are employed as required. This is also called ‘Core-Periphery’ organization.
§ Divisional Structure: This process involves structuring the organization into separate divisions, each concerned with discrete manufacturing, sales, and distribution or service functions with serving a particular market.
§ The Processed-Based Organization: A processed based organization is one in which the focus is on horizontal processes that cut across organizational boundaries.
§ Decentralized Structure: Some organization especially conglomerates, decentralize most of their activities and retain only a skeletal headquarter staff to deal with finance control matters, strategic planning, legal issues and sometimes, personnel issues especially those with senior management on across the group basis.
§ Job Analysis: This term is usually resolved for procedures and methods of analysis similar to the technique described system.
§ Task Analysis: This is probably the most important form of analysis for training purposes, the techniques focuses on the objectives of tasks that people perform and provides an extremely flexible and useful method of analysis.
§ Training Design: This is designed to bring about changes in people’s behaviour and the success of such endeavour is determined by how effectively these changes are instituted.
§ Skill Analysis: This term is usually resolved for procedures and methods of analysis similar to the technique described system.
1.9 Organization of the Study
This study like other academics research in the faculty will be organized into five distinct chapters as follows;
Chapter one focuses on the introduction of the study, statement of problem, objective of the study, research question and hypothesis, significance of the study, scope and limitation of the study and definition of terms.
Chapter two is the literature review. It covers the literature reviews and theoretical framework of the study. To be reviewed are works and opinions of authors with respect to the impact of effective organization structure on employees performance.
Chapter three contains the methodology of the study. It is the blue print of the project.
Chapter four dwells into the data presentation and analysis gathered in the course of study.
Chapter five is the last chapter that summarizes, recommends and concludes the study.
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