The Impact Of Organizational Structure On Management Effectiveness In Nigeria (A Case Study Of Entraco Enugu)

The Impact Of Organizational Structure On Management Effectiveness In Nigeria (A Case Study Of Entraco Enugu)

Abstract

This research work was conducted to find out the impact of organizational structure on managerial effectiveness of a named organization (ENTRACO).

This research work on the chosen topic was deemed necessary by the researcher in view of the conclusion reach by several schools of though on management that the way an organization is operationally structured could make or many organization in the achievement of its objectives.

The research in the course of the work, administered some structured questionnaire to critical office of the establishment, aimed at eliciting useful information. This was complemented by view of related literature on the subject including study of the organization structure in the establishment.

Arising from the above exercise, the researcher was able to discover among others.

1. There is weak organizational structure in the establishment studied because the organizational structure in place are not well spelt out as many functional frameworks were not represented on the structure.
2. There was also apparent lack of adequate knowledge and understanding by most staff of the establishments on the structural arrangements and this breeds conflicts in communication channels.
3. That the lack understanding of the organizations structure arrangement contributed to lack of policy and organizational manuals.

In the view of the fact that the above lapses were found to be seriously militating the achievement of the organizational goals, it was then recommended, thus;

1. That the organizational structure currently in place in the establishment should be reviewed and redesigned to include all functional frameworks hitherto not represented.
2. Then the above (1) should be backed up by policy and organizational manual.
3. Proper induction conducted for employers of the establishment on the need for adherence to the organizational structure and reportorial relative ties.

Chapter One

Introduction

1.1 Background of the Study

Many theories of organization have been propounded by the management scholars right from the classical era of contemporary period. These management gurus had common opinion that all not profit oriented had sets of objective to be achieved. For these objectives to be achieved, issues centered on the effective management of the organization like division of work, hierarchy of authority, Chain of command and Span of control etc, shall be put in place in a determined fashion that will suit the organizations. This is tantamount to structuring of organization. Organizational structure therefore, simply put in the framework on which an organization is built. It is a network of authority and role of relationships.

In a situation where these are obtained, the net result is the harmonization of operational activities, enhancement of friendly atmosphere among workers in the organization and the smooth attainment of the organizational objectives.

For the purpose of clarity and the practicability of this study, several forms of organizational structure like functional structure, line and staff structure can be adopted. Some other types of structure are product based organizational structure, geographical structure and matrices structure.

Unfortunately, despite the obvious advantage or impact inherent in structured business into attained forms, many Nigeria organization do not appreciate the qualities and guideline peculiar to the chosen structures. This main adherence to the tends of the chosen structure account for the numerous cases of discontinuity and failure in business. The appropriateness of the organizational structure also causes lack of co-ordination, low moral, back passing, role clash of responsibilities and weak financial base in most Nigeria business.

The preponderance of organization ineffectiveness and lack of effectiveness of most Nigeria business organizations are traceable to structural adequacies that makes it mandatory that an investigations into these problem should be carried out in other to solve them.

This need makes the research, the impact organizational structure in managerial effectiveness of selected organization in Enugu state more appropriate.

Organizational structure of the Enugu state transport company limited (ENTRACO) Enugu.

The structure of ENTRACO Enugu consists of three major sections namely: the workshop division, commercial division and operating division. The highest in the organizational hierarchy is the controlling ministry (ministry of state transport) being a government establishment; the Enugu state transport company limited (ENTRACO) activities are directly under the monitoring eyes of the ministry of transportation for the government.

Coming directly below the ministry is the boards of directors headed by a chairman. They are the making body of this company also directs the operations of the company in the desired directions and act as a check on the performance of the managing directors. Finally the jurisdiction of the board of directors covers the entire company.

Under the board of directors is the chief executive who is called the general manager. He possesses executive power in the company and sees to the day to day running of the business. He is answered to the board of directors and his span of control extends throughout the entire company.

One can conclude that as state operating agencies of the federal urban mass transit program, Enugu state transport company limited (ENTRACO) Enugu is structurally organized in a manner to provide cheap, reliable and effective services for the Urban and Rural communities.

Enugu state transport company limited (ENTRACO) come into existence on the 1st of October 1991 under the license of Federal Urban Mass transit program (FUMYP) when the nation was in dire need of transportation cost.
ENTRACO is one of the state operating agencies of the federal urban mass transport program that was charged amongst others, to provide cheap, reliable, efficient transport service for the urban commuters.

ENTRACO offers three major types of services as follows:

Inter city services- Enugu to Onitsha Owerri, Port Harcourt and Abuja etc.

Chapter services- They hire vehicle to anybody that wishes to and the fees are according to the distance and days it will take them to came back.

1.2 Statement of Problems

In many institutions and organizations, organizational structure has made a very big impact towards uplifting the affairs of the organization sometimes organizational structure posses a positive impact, in that it could also have a negative impact is workers decide to act on their own without the guides of the organizational structure.
The organizing function can be visualized as a system of overall management system.

Any organization that is properly structured finds it very difficult to uplift the affairs and the operation of the organization, there by constituting a negative impact on the organization if workers decided to act on their own without delegation of duty and responsibility.

The problem of not having a very good and reliable structure in an organization will bring the workers to leaving many work undone and legislate to authority and responsibility, since it is the frame work on which an organization is built and also the network of authority and role of relationships. The net result of the organization not harmonized and the operational activities also when a good structure is lacked.

Enhancement of friendly atmosphere among workers in the organization and the smooth attainment of the organizational objectives is hampered.

All these problems mentioned above are controllable. These can only be achieved by setting a good structure in the organization which will cover both the functional structure, line structure, staff structure, product based organizational structure, geographical structure and matrices structure.

The organizing function like organizing function can be visualized as a system of overall management system. The Enugu state transport company (ENTRACO) has its own organizational structure based on this, one may ask whether Enugu state transport company has achieve its organizational structure existing in the organization.

1.3 Purpose of the Study

The purpose of the study is to know how effective the structure that ENTRACO has set is.
To know if the organizational structure is truly needed in an organization. To impact or expose more knowledge of the organizational structure and its purpose and usefulness to an organization.

1.4 Scope of the Study

The research deals primarily with the study of the operation of the organizational structure in the Enugu state transport company limited (ENTRACO) Enugu. It is critical analysis and evaluation of the role of organizational structures of the establishment with he view to determine their influence on the effective and efficient management of the organization.

1.5 Research Question

It is the objective of this study to know:

1. What type of organizational structure do ENTRACO have?
2. What is the adequate number of staff to be super vied by one boss?
3. What is the financial strength of the organization?
4. How they transfer from one duty post to another in the organization?
5. Whether the organization adequately define their duty schedule?
6. What are the criteria for rewarding and promoting workers in the organization?

1.6 Research Hypothesis

In order to accurately verify whether organizational structure has any impact managerial effectiveness of organizations with special reference to Enugu state transport company (ENTRACO), the following hypothesis are formulated:

1. NULL HYPOTHESIS (Ho): Organizational structure plays no role in effective management of organization, especially in ENTRACO Enugu.
   ALTERNATIVE HYPOTHESIS (Hi): Organizational structure managerial effectiveness of organization, especially ENTRACO.
2. NULL HYPOTHESIS (Ho): The financial position of the organization is supporting the effective functioning of the organizational structure.
   ALTERNATIVE HYPOTHESIS (Hi): The financial position of the organization is supporting the effective functioning of the organizational structure.
3. NULL HYPOTHESIS (Ho): There is insubordination in ENTRACO because of the way it is structured.
   ALTERNATIVE HYPOTHESIS (Hi): There is insubordination in ENTRACO because of the way it is structured.

1.7 Significant of the Study

Having devoted time and effort on the study, the researcher hope to achieve some hand marks at the end of the study. This research is quite significant given the benefits of a good organizational structure. Organizational structure helps to determine how an organization should be run.

This research work will be of great benefit to many and will go a long way in satisfying the need of people like

The students

After their graduation, and they went for employments, they will be able to know the structure of the organization and where the post given to him/her falls in for him/her to know what is required of him.

The lecturers

Will gain a lot. If the impact of the organization is favourable on their own side, the implication is a harmonious working environment synonymous with efficient and effectiveness.

Future researchers

This research will as a guide to them that want to research more on this topic or any topic that is related to it. It will help to reduce the problem of inadequate source of information or material.

General public

The work will serve as an eye opener, while going for a transaction in an organization to be able to know who and who to approach for the problem that brought him/her to the organization.

1.8 Limitations of the Study

The completion of this study has not been easy due to some constraints and limitations encountered by the researcher like

1. Lack of adequate financial out lay involved in a research of this nature.
2. Again, as pioneer work on this field of study, there is the problems of sourcing of some relevant materials that relate to this topic for an in depth research.
3. The researcher also have the problems of time constraints. The researcher in addition to writing this research has other courses and examination to tackle in an attempt to combine them posse a great problems to the researcher.

1.9 Definition of Terms

The researcher deemed it necessary to define or explain the following terms used in this piece of work.

a. Management:

It is the utilization of both human and materials resources effectively and efficiently in other to achieve the set goals and objectives.

b. Organizational Structure:

It is a mapped out patterns or a set out relationship between individuals positions and responsibilities and authority in an organization in achieving its objectives.

c. Delegation:

This is the process by which an individual manager or supervisor transfer part of his authority or power of act to a subordinate to do a particular work but, without relinquishing the ultimate responsibility entrusted to him by his own superior

d. Authority:

This is the legitimate power can be delegated. It is the right to do something.

e. Responsibility:

This id the obligation to perform certain function on behalf of the organization.

f. Span of Control:

This is the principles of an organization which states that there is a to the number of people and functions that one person can supervise effectively.

g. Chain of Command:

The relationship between different levels of employees.

Chapter Five

Discussion, Recommendations and Conclusion

This chapter deals with a summary of findings based on the data collected from the response of the research questions and hypothesis, which were analyzed in chapter four.

This researcher will finally draw conclusion from his findings and make recommendations from the modification of the structural managements of the studied growth potentialities, safeguard against obsolesce and to keep trend with the dynamic academic and business environments.

5.1 Discussion of Results / Findings

The organizational structure of Enugu state transport company limited is conglomerations of line, staff and product structure but the fact were not adequately represented in the company’s organizational chart. The company’s organizational structure finally reflect all functional department necessary for the effective and efficient performance and achievement of organizational objectives but the structure is not supported both coherent organizational manuals and this gives rise to inconsistencies reporting system, job duplication and over lays etc.
In Enugu state transport company limited some department are also staffed and this posses a great burden on the few available employees who put on extra time and efforts in order to accomplish the assigned task.

Functional Position

Financial position of the Enugu state transport company limited is in a bad condition. It has a very poor financial base and it not funded by the Enugu state government who owns it or any other agencies.

This lack of financial strength militates against the achievement of the objectives of the organization and often time’s leads to the non- payment of staff salaries and work stoppages.

5.2 Conclusion

Management is the process of combining and utilizing human and material resources in order to achieve organizational objective through the instrumentality of the section network of interactions and relationships between positions, their functions and occupants. This network is collecting and conceptually known as organizational structure.

The principal function of the organizational structure of any organization is essentially to facilitate desired decisions and actions and limit or excludes decisions and actions not desired organizational performance, stability, survival and growth. A good organizational structure however does not guarantee effective and efficient performance but a poor structure nevertheless makes efficient and effective performance impossible regardless of the quality of its operators.

It is obvious from the foregoing that there is need for the updating and improvement of the organizational structure of the ENTRACO to accommodate all the functional future growth potentials as make the organizations readily responsive to the dynamic academic and business to the dynamic and business environment in which they operate.

5.3 Implications of the Research Findings.

The mode of implementation of the condition of services by the organization discourage their works and this leads to low productivity of the work force and adverse effect on the capacity of the organization in achieving their objectives. The Enugu state transport company limited Enugu does not play their role well.

At most times, her vehicles are off streets or roads due to lack of vehicle maintenance. Her problems are so many as stated before and unless the company is resolved from the problem, it may go off the roads permanent.

5.4 Recommendations

In view of the finding of this studies and taking cognizance of the importance of the topic to the effectiveness survival and growth of ENTRACO limited ENTRACO as well as other similar organization, the researcher wishes to make the following recommendations.

1. The organizational structure of ENTRACO should be received and redesigned to include the entire functional frame works not hitherto represented in the original structure. The review is also necessary to provide present and future growth potentialities and also to keep trend with the dynamic academic and business environments.
2. The will make for effective teaching also for easier control; more staff should also be recruited in ENTRACO to lessen the borden of work on the few available hands.
3. The situation where duty schedules and functions are not properly defined is very disappointing. The chief of the organization should as matters of urgency try to give adequate definition of the duty schedules and function of various departments. This is better achieved through the use of organizational manuals to support the organizations chart as well as with the assignment and standard instruction sheets. This will make the function of each department and duty schedule of each officer clear to them and remove functional clashes, duplication and instructions of authority from the system and give way to improved performance.
4. Through, the establishment in state government owned parastatals, the government and its officials should not interfere with the management of the organization. It is therefore the view of this research that if the organizational structure of the government owned establishment are viewed and updated along the above recommendations, they be better placed to play their individual roles more effectively and efficiently.

5.5 Suggestions for Further Research

The researcher should examine the impact of organizational structure on managerial effectiveness of organization in Enugu state.

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