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)

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

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