The Effects Of Organizational Structure In The Management Of Organization (A Case Study Of Life Vegetable Oil, Nnewi)

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The Effects Of Organizational Structure In The Management Of Organization (A Case Study Of Life Vegetable Oil, Nnewi)


The major purpose of this study is to examine the effect of organizational structure on management with reference to life vegetable nnewi. The population of this study consisted of 90 workers of life vegetable company. The sample of the study was consisted of 40 out of 90 staff of vegetable company oil umudim nnewi. The sample was drawn using systematic random sampling the data gathering instrument was questionnaire. Three research questions was developed and validated which glided the study. The research designed utilized in the study was a survey method. Sample percentages were used to answer the research questions. The major findings of this study was that the organizational structure has contributed immensely to the efficiency or inefficiency of workers in the organization. The delay in decision making affects the effectiveness or performance of workers in the organization. Organizational structure encourages inefficiency and ineffectiveness. It was concluded that for every company to be effective there must be an organizational structure. And each structure must be doing the right thing at the right time. The researcher recommended that information is very essential to every organization. Confidential information about the organization should be kept secret, managers should live exemplary lives by avoiding corruption, abuse of power, official indiscipline, favouritism and nepotism ensuring the organizations rules and regulation are implemented.

Chapter One


1.1 Background of the Study

The effects of organizational structure on any worth while enterprise cannot be over emphasized. This is because organizational structure hinges on the very foundation of effective business enterprises. The essential element necessary for effective organization this include;

  1. The nature of the establishment itself.
  2. It objectives
  3. Productivity
  4. Services and interaction

For any meaningful business to thrive, these factors must be placed in motion and must work harmoniously amongst each other.

Organization is defined in many ways. In the study of the management, it can be referred in structure of relationship among individuals.

Organizations are primarily complex of goals seeking of unit which in order to survive must accompany secondary task e.g. they must maintain their internal system to co-ordinate the human side of the enterprise and must adapt and to shape the external environment.

EITON (1984) stated that human affiliation of man could be a motivating force and viewed of the industrial organization as a social and economic as well as technical system.

According to Elton, managers should be judged by their ability to maintain co-operation, this implies that once a primary group is seen as motivating force, it may be said that a managerial elite will become absolute as the works, the group itself become the decision making. Whether or not, this is possible. It does appear that changes is needed in inter-personal relations and it is here that management can help by instilling value which permits the expression of feeling and trust and concern for the individual.

The organizational structure is the basic framework within which the executives decision making behaviour occurs. The quality and nature of decision made are influenced by the nature of the organizational structure as an element of management and it concern with grouping of activities which must be grouped logically and authority must be granted so that conflict do not occur.

According to Agwu Akpala (1988) management is the process of combing and utilizing or allocating organization inputs (men, material and money by planning, organizing, directing and controlling for the purpose of producing outputs goods and services or whatever the objective are desired by the customers so that the organization objectives are accomplished.

In this process, work is performed with and through organization personal is an over changing organization environment. Management can also be defined as the effective and efficient utilization of human resources and non human resources to achieve organizational goals, hence producing goods and services desired by customers. We believe that by this studying the management process, you can increase your effectiveness and efficiency as a manager. To be effective, one need to be combine on his study of management with experience. This means that the management can also be got through experience.

1.2 Statement of the Problem

The need of the effect of organizational structure on management cannot be over emphasized. This is because goal attainment is an important index in an organization.

Organization structure is a practical division of work, the scalar process and span of management. The quality and worth of any organization depend on the caliber of manager that behind it.

Organization with the effective managers is likely to be successful while those without effective managers may fail. In a developing country like Nigeria, many problems are involved in effect of organizational structure on the management.

Poor Communication

This means that a manager who does not possess adequate human relation skill with his employees is likely to fail there, as one with adequate human relation skills with his employees to succeed is that when there is a good rapour among the managers and the employees, the goal and objectives of the organization is more likely to be achieved but in some organization there is lack of communication or good rapour among the managers and their employees.

Lack of Raw Materials in the Organization

Insufficient resources can hinder productivity of an organization, this means that organizational resources need to be allocated to the various individuals and units and it is a manager who does this in order words he is the resources allocator.

Problem of Advertisement

This is another problems that hinders some organizations. Some organizational product mere not known by the buyers in the market and his leads to low return rate of the product. Like telephone, radio, magazine and other forms of communication should be improved.

Lack of Good Road

Company or organization with poor road network always loose and this may equally lead them to liquidation. Organization also loose some material that is good facilitated the organization to enable them well carrying out normal operation.

Lack of Capital

No organization can set up a business without enough capital and no business can survive without making profits. The above study clearly indicate the problems facing organizational structure on management and solution to the problems that may be available.

1.3 Purpose of the Study

The major purpose of the study is to examine the effects of the organizational structure on management with the reference to life vegetable on Nnewi. Basically, the study aims at:

  1. Find out the meaning of organization structure
  2. To ascertain the position of the organizational structure in life vegetable oil.
  3. To ascertain the impact of this organizational structure has made on the workers performance. It is hoped that the result of the study would help to confirm or cancel the view that the effective management depends on the organizational structure with particular reference to life vegetable enterprise.

1.4 Significance Of The Study

There is urgent need to find out the effect of the organizational structure on management especially at the present time when most of our business enterprise are fast growing.

This study is important in the sense that it will provide vital and desirable information to business institutions especially the vegetable oil industry.

It will help us to know the integral part of our lives and the society we live in. the study will help us to spread knowledge and experience.

It will help students who want to follow the same line of action in their own research project. It will further help to cover conflicts that may occur in an organization.

The study will help employee and employers to know their positions in an organization.

1.5 Research Questions

This study sought answers to the following research questions.

  1. What is the meaning of the organizational structure in the life vegetable oil
  2. What is the position of organizational structure in the life vegetable oil?
  3. How does organization structure affects workers performance?

1.6 Scope of the Study

Any study or problem solving embarked on is targeted on giving extracting information from a particular environment.

This study is expected, if well handled to cover the effect of organization structure on the management in the life vegetable oil in Umudian in Nnewi North Local Government Area.

1.7 Definition of Terms


A group of people who form business club in order to achieve a particular aim.


The way in which part of some thing are connected together, arranged and organized.


Act of running and controlling a business or similar organization.


Something that can be of help to achieve aim.


Creating awareness about a particular job or services

Chapter Five

5.0 Summary, Conclusion and Recommendation

5.1 Summary of Findings

The chapter aims at summarizing the research findings drawing conclusion about the finding and making useful recommendation.

Majority agree that communication and authority flow from top to bottom in an organization. This means that the manager is a nerve center of his organization. Therefore, to avoid any power tussle in an organization. It is the duty of the manager to bring information and transmitting information to his subordinate.

This research revealed that majority agree that life vegetable oil obeys all the feature of any other type of organization and also organizational structure does not allow the junior workers to participate in decision making. here it mean that all decision must be carried out by organizational structure only to avoid routine problems.

It is well clear and well appreciated by great number of person that rigidity to structure in organization encourages inefficiency and ineffective. This simply means that for any organization to be efficient and effective, they should be proficient and knowledgeable in the tasks they are grant to be carried out. If the organizations are not knowledgeable enough to carry out their functions, it means that it will lead to liquidation or minding up on organization due to poor productivity.

5.2 Conclusion

In conclusion, for every company to be effective there must be an organizational structure. Each structure should be doing the right time in order to attain good position in the company, organizations are primarily goal seeking units which in order to survive must accomplish secondary task e.g. they must maintain their internal system to co-ordinate the human side of enterprises and must adapt to and shape external environment.

This study has been a worthwhile exercise in that it has helped in assessing management and recommending solution to the problems. It has also helped for enlargement of abilities which usually leads to specialization and exchange and also providing the researcher what management is like in practice before going into the field. Organizations are also forced to derive social satisfaction.

Finally, it is the researcher future hope that if the suggestions is made, this study are properly put into practice, the company will certainly improve on its management operations.

5.3 Recommendations

Based on the above findings, the following recommendations are made;

Information is very essential to every organization, confidential, information about the organization should be kept secret and that the information is being handled by the employee responsible for it.

Raw materials and other office materials must be regularly available. Efforts should be made to avoid using absolute materials or equipments and where they are being used, they should be replaced. All employers of labour should ensure that their staff undergo training and development periodically. This will improve workers horizon, proficiency and knowledge.

Manager should live exemplary live by avoiding corruption, abuse of power, official in discipline, favouritism or nepotism and making sure that the organizations rule and regulations enforce. Ensuring that other duties and responsibilities necessary for the organizations continued existence are carried out to the best of the workers abilities and in the interest of the organization. The strength and weaknesses of every worker should be ascertained before job sharing. This is necessary to avoid duplication of efforts and costs that may be incurred as a result of mistakes committed be incapable sub-ordinate.

Finally, recommendations were suggested that with effect improvement if the recommendations are fully implemented by all participants of business, sooner or later all these problems will be a thin of the past.

5.4 Limitation of the Study

The following limitations were inherent in the study;

In the cause of carrying out this study I was faced with some difficulties.


This is one of the limitations in the study of this work. In the first place as this research work was carried out at school level I have to apportion my time so that the demand for other course could be met even the time given for the research was little to go beyond this level or to expand more on this project work.

Non-Availability of Research Materials:

There was no sufficient materials in the library to bring up facts, that will be useful in the course of the study. Again the library accommodation is small that it contains only few students.


The cost of transportation was one of the impediment it was not out of place, transporting myself from one location to another in a bid to collect materials for the project was one of the hindrances and limitations.


The respondents did not help matters at the initial stage, my respondents were afraid to fill the questionnaire items. It becomes a difficult task for me to convince them with enough reasons why it is necessary for them to fill in the gaps. Because of financial problems encountered during this research work, I was unable to go beyond the sample population in which I found myself, and I improve other researchers coming after me to take it up from where I stopped because it is a continuous process.

5.5 Suggestion for Further Research

The following suggestions were made for further research:

  1. The study can be repeated in other organization.
  2. Organization personnel should be motivated and equipped in order to put in their best for performance in the organizations.
  3. Training workers should be considered as cordial means of increasing the efficiency and productivity of the organizational structure.

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