The Importance Of Organizational Structure In Effective Management

Project and Seminar Material for Business Administration and Management BAM

The Importance Of Organizational Structure In Effective Management


Abstract


The aim of this work is to examine the importance of organizational structure in effective management of general cotton mill Onitsha on issue affecting the management and employees. To uncover the trend of events in the scene, a review of related literature was carried out. As a method of gathering data a structured and closed-ended questionnaire was designed, validated, reproduced and administered on a sample of 50 out of which 40 were retrieved while 12 were lost due to logistic problems. Data based on these were presented and analyzed. It was discovered among other things that, communication, workflows, authority and responsibility are all valid relationships that exist between different dimensions of organizational structure that can affect managerial efficiency. It was concluded that the manner in which an organization is structured is evident in the effectiveness of the management of such organization and also there only a low degree of difference existing between the structural designs of the department within the organization. The following recommendation are made by the researcher based on the organizations generally and general cotton Mill Onitsha must review there organizational structure with the intention of adopting or creating one that will be completely free from communication hitches and hiccups so that cohesiveness will rule in such organizations and better understanding of tasks, expectations etc. can be upheld at all time.


Chapter One


Introduction

1.1 Background of the Study

Every organization have objectives which has always been to achieve a goal. These objectives are identified through planning. This is simply because through planning, management of organization establish means of achieving objectives invariably, establishing a means for achieving these objectives becomes the prior occupation for management. This brings theme face to face with a major management function which is organization. The organization process is mainly aimed to achieve co-ordination through the design of structure of task, authority and relationships. Meanwhile, the level of objective attainment generally determines the extent of management effectiveness. On the other hand, structure being a direct result of management function of organizing is the framework through which an organization accomplished the task and responsibilities needed to attain its objectives. This may be why Donnelly et al (2004) stated that “structure is a means for achieving the goal established in planning. Coming to task that structure in the present day organization presents, the need for people to organize their efforts in order to attain certain objectives becomes more and more imperative. Hence organization structure defined the format for allocation of work roles to identify the members of the organization. It establishes the line of authority for integration and co-ordination activities. According to Gabraith and Nathanson, (2009) organizational structure means “the organization of work into roles such as production, financial, marketing and so on. The combining of roles into departments or divisions all in an effort to achieve set objectives. We can therefore describe the functional structure in terms of dividing tasks, jobs and delegating authorities thus, this provides some aspects of major challenges faced by management, management in expected to make the appropriate analysis that will help in designing an effective organizational structure.

A sound organizational structure will aid directing, co-ordinating and control, in the overall outset of an organization and its members. Therefore it becomes a network of interaction and relationships between positions, therefore functions and occupants and also a means through which management attempt to achieve organizational goals. The foregoing emphasizes the fact that structure is the result from organizational design. It could therefore be regarded as a guide without which a managerial team will not function effectively. Thus, it is far from surprise that it has been the subject of intensive study which has been adopted in trying to design effective organization structure. Firstly it was the classical theorists who passed the ideal of “one best way for structuring effective organization. Unfortunately the answer provided by the decades of systematic research has proved this notion wrong. Organizations face a wide range of internal and external conditions that there cannot be a single structure or design that will prove successful in all. Thompson (2007), has confirmed that idea by stating that, the best organizational structure is one that can adjust to tackle any situation at hand. At this basic fact has become increasingly apparent, a new prospective on organizational design known as the contingency approach has taken form. Supports of this approach reason that there is, in fact not best single structure. People and environment in the above factor function with the key dimensions of organization structure, which include departmentation, chain of commands, span of control, centralization, conversion staff complexity. The above facts, present a lot of challenges for modern managers. Prescribing a successful organizational structure that agree adjusts to agree with both internal and external environment. Unless, researches are therefore carried out inorder to involve radiated recommendations, they will not be effective in practice.

Brief History of General Cotton Mill Onitsha

The company was incorporated in 1964 as a private company under the companies ordinance (AP 37 to manufacture printed cloths. It came into full operations in 1973 after new equipment were acquired for the spinning/weaving mills to complement the printing process thus becoming a full integrated textile factory. General cotton mill Limited facilitates include 39640 spindles, 1,238 looms and finishing plant for bleaching, drying and printing which include 2 rotary printing machines. The company since its inception maintains two service agreement. It is technically supported by Texas cotton mill limited of Hong Kong and by UAC of Nigeria Plc, for it commercial services. They supply prudent management resources sustain over the years. The authorized share capital of the company is N400,000 share of 50 kobo each i.e. N200,000 only N189,583,330 share are issued and fully paid.


1.2 Statement Of The Problem

Overtime, organizational structure has been proven to be of basic importance to every organizations existence. Authorities and responsibilities will be clearly defined, every task assigned to a person and the person held responsible for how well or badly he or she performs the job. Duties and tasks are shared into departments and units with a manager overseeing the affairs of such departments and units. These departments must all work harmoniously towards the achievement of set objectives (Udoye, 2011). The problems that are encountered therefore, are problems of duplication of tasks and repetition of process. The importance of organizational structure in management effectiveness cannot be utilized if the best organizational structure is not adopted. Most cases haphazard and unobjective structures are due to management neglect of the importance of organizational structure. The study therefore will seek to highlight deeply, the importance of organizational structure in order to draw the attention of management to it. The study will also identify different patterns of organizational structure and their characteristics so that management can be well informed towards choosing the bets structure that will suit the operations of general cotton mill, Onitsha.


1.3 Purpose of the Study

This study is to examine the relationship among some element of organizational structure and managerial effectiveness in Nigeria business organization.

Therefore it will seek to:

  1. Identify factors in the organizational structure that could affect managerial effectiveness.
  2. To determine whether there is problem in the structural design of any department within the organization.
  3. To find out if the level of education of subordinate influence the way a manager structures his department.
  4. To identify the links between the above variable and the managers degree of effectiveness in meeting up to the objectives he is expected to achieve.
  5. Determine whether those variables have the same or different effects on managerial effectiveness in the different departments.

1.4 Significance of the Study

Proper organizational structure in the organization will reduce role conflicts and avoid stress to manager, it will also specify span of control. The study will help many corporate organizations that will go through the work in adopting a sound or proper organizational structure, which will enable them achieve their set objectives. It will also specify the roles the work flows and flow of authority or responsibility from top to the bottom of the organization, which reduces stress and job dissatisfaction among some employee. It will encourage, easy job analysis in the organization. This research will also help top management during job evaluation and performance appraisal.


1.5 Research Questions

In order to further guide this research work, the following questions have been advanced.

  1. What relationship exists between different dimensions of organizational structure that can affect managerial efficiency?
  2. What is the degree of difference existing between the structural designs of the department within the organization?
  3. Does the level of education of the subordinates affects or influence the way a manager structure his department?
  4. What are the lines between the above variables and managerial degree of effectiveness in meeting up to the objectives he is to achieve?
  5. Does the same variable have some or different effects on managerial effectiveness of other organizations?

1.6 Scope / Delimitation of the Study

Due to the nature of this research, it will not be feasible to study the influence of all the structural variable that could affect managerial effectiveness hence, only some of them will be covered in this study. The scope of this study will be limited to General Cotton Mill Onitsha, due to time and financial constraints.


1.7 Definition of Terms

Organizational Structure:

Refers to the setting through which an organization accomplished the task and responsibility needed to attain its objectives and goal.

Organization design:

Concerned with identifying basic principles that determine the organizational structure of any business organization in relations to the demand of technology and environmental forces.

Technology:

This is the conversion process used by an organization to transform inputs into outputs.

Environment:

Refers to those elements, institution, organization etc whose activities affects the performance of an organization and are not subject to the organizations control. Hence, the organization must adopt or adjust to their demand or only try to have some level of influence on them.

Centralization:

Refers to the degree authority and responsibility are concentrated to key persons in the organization.

Co-ordination:

The process of creating an effective links between the components parts of organizational structure which results from departmentalization.

Authority:

Is the right to act, it is power vested in a particular person or position and accepted as appropriate and recognized as legitimate not only by the power wielder but also by those over whom he holds such power.

Strategy:

The basic goals and objectives and means of achieving them.


Chapter Five


Summary of Findings, Conclusion and Recommendations

5.1 Summary of Findings

The relationships that exist between different dimensions of organizational structure that can affect managerial efficiency are the way communication flows, the way work is carried out harmoniously and simultaneously in the system, the level of authority vested in each position and the degree of responsibility such positions demand. Since the work processes of the entire organization though broken down to units and departments are harmonious, the degree of difference existing between the structural designs of the department within the organization was found to be low. And managers pay attention to the level of education of their subordinates when structuring the department. Finally, same level of education of subordinates have different effects on managerial effectiveness of other organizations.


5.2 Conclusion

From the findings of this research work, the research therefore came to a main conclusion that the manner in which an organization is structured is evident in the effectiveness if the management of such organization. Specifically, the following conclusions were deducted.

  1. That communications, workflows, authority and responsibility are all valid relationships that exist between different dimensions of organizational structure that can affect managerial efficiency.
  2. That there is only a low degree of difference existing between the structural designs of the department within the organization.
  3. That level of education of the subordinates affect or influence the way a manager structure his department.
  4. And that the same level of education of subordinates have different effects on managerial effectiveness of other organizations.

5.3 Recommendations

Reflecting on the findings of the research work, the researcher hereby makes the following recommendations thus:

  1. That organizations generally and General Cotton Mill Onitsha must review there organizational structure with the intention of adopting or creating one that will be completely free from communication hitches and hiccups so that cohesiveness will rule in such organizations and better understanding of tasks, expectations etc. can be uphold at all times. This structure will clearly eliminates duplication of tasks and enhance easy flow of work in the entire system, thereby optimally utilizing the theory of division of labour and specialization. Still clearly defining who is who, who does what and who reports to who.
  2. That organizations must ensure that the difference in work process of every department is not too different from others so that every employee will be familiar with the duties of other departments, how to harmonious work with them and what to expect from them.
  3. That managers must consider the educational exposure of them subordinates before structuring their departments so that the jobs are designed in a way that each subordinate can comfortably handle. Although not all organizations demand this level of care and specifications.

5.4 Limitations of the Study

The researcher encountered problems in carrying out this research work. The problems include:

Time Factor:

There was not enough time to gather all the necessary information relating to the study because the researcher has to combine the research work with other curricula activities.

Financial Constraint:

The low financial capacity of the researcher also restricted the area of the study. As a result of this, it became necessary to limit the extent of the research to available resources.

Attitudes of Respondents:

Some respondents complained of time and did not detail their response and others were not available during the researcher’s visit. And others were indifferent about the topic and could not give constructive opinion.


5.5 Suggestions for Further Research

Further research should be carried out on this topic; “the importance of organizational structure in effective management” in public sector or academic institution to further ascertain a comparative view of the topic and brings more points to fore.


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