An Investigation Of Environment And Its Effect On Organizational Structure (A Case Study Of Ecobank, Asaba)

Project and Seminar Material for Business Administration and Management BAM

Abstract

This study was carried out an investigation of environment and its effect on organizational structure using Ecobank, Asaba as a case study. The study was carried out to ascertain whether there is a significant relationship between work environment and organizational productivity, find out the factors which contributes to an effective work environment in organization, find out whether work environment has an impact on workers efficiency thereby influencing organizational productivity, determine whether work environment influences organizational commitment and effectiveness, ascertain whether ergonomics promotes organizational performance. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of staff of selected Ecobank branch in Asaba. In determining the sample size, the researcher conveniently selected 57 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables. While the hypotheses were tested using Pearson Correlation statistical tool, SPSS v23. The result of the findings reveals there is a significant relationship between work environment and organizational productivity. The study also revealed that the factors which contributes to an effective work environment in organization includes: adequate provision of work equipment, comfortable office layout, proper ventilation, effective occupational/safety practices, conflict management, interpersonal relations, leadership style. Therefore, it is recommended that to improve organizational performance, organizations should ensure that office design at the workplace does not affects employee concentration at work. To mention but a few.

Table of Content

Title Page
Certification
Dedication
Acknowledgement
Table of Content
List of Tables
Abstract

Chapter One:

Introduction

1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Limitation of the Study
1.9 Definition of Terms
1.10 Organisations of the Study

Chapter Two:

Review of Literature

2.1 Conceptual Framework
2.2 Theoretical Framework
2.3 Empirical Review

Chapter Three:

Research Methodology

3.1 Research Design
3.2 Population of the Study
3.3 Sample Size Determination
3.4 Sample Size Selection Technique and Procedure
3.5 Research Instrument and Administration
3.6 Method of Data Collection
3.7 Method of Data Analysis
3.8 Validity of the Study
3.9 Reliability of the Study
3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

4.1 Data Presentation
4.2 Analysis of Data
4.3 Answering Research Questions
4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
APPENDIX
QUESTIONNAIRE

Chapter One

Introduction

1.1 Background of the Study

In the rapidly changing and competitive business landscape, organizations are constantly faced with the challenge of aligning their structures with the external environment to achieve sustainable success. The organizational structure serves as the backbone of an organization, determining how tasks are divided, authority is distributed, and communication flows within the entity. The effect of the environment on organizational structure has been a prominent area of research, as it significantly influences an organization’s ability to adapt, innovate, and thrive in dynamic circumstances (Donaldson, 2001).

The relationship between the environment and organizational structure is rooted in the concept of contingency theory, which posits that there is no one-size-fits-all approach to structuring organizations. Instead, structures must be contingent upon the specific demands of the environment in which the organization operates (Lawrence & Lorsch, 1967). This implies that environmental factors such as uncertainty, complexity, and resource availability are key determinants in shaping the structure of an organization.

Environmental uncertainty refers to the unpredictability and volatility of the external environment, including changes in customer preferences, technological advancements, and shifts in the competitive landscape. Organizations facing high levels of uncertainty are compelled to adopt more flexible and decentralized structures to enable rapid responses to unforeseen challenges (Duncan, 1972).

On the other hand, environmental complexity refers to the intricacy and interrelatedness of factors in the external environment. Organizations operating in complex environments may employ matrix structures, which combine functional and divisional forms, to effectively manage interdependencies and coordinate diverse activities (Galbraith, 1973).

Moreover, the availability of resources in the external environment, known as environmental munificence, also plays a vital role in determining organizational structure. Resource-rich environments may encourage organizations to experiment with more complex and innovative structures to leverage abundant resources for growth and expansion (Aldrich, 1979).

Furthermore, technological advancements have emerged as a critical driver of environmental change. Organizations facing rapid technological disruptions may need to adopt adaptive and innovative structures to stay competitive and maintain relevance in the market (Anderson & Tushman, 1990).

This study aims to provide a comprehensive review of the effect of environmental factors on organizational structure, drawing insights from seminal research and contemporary studies. By understanding the interplay between the environment and organizational structure, organizations can make informed decisions about how to best configure their internal operations to navigate through the complexities and uncertainties of the external world effectively.

In the following sections, we will delve into the various environmental factors that influence organizational structure and explore how organizations have strategically adapted their structures to match the demands of their respective environments. Through a synthesis of theoretical frameworks and empirical evidence, this study seeks to contribute to the existing body of knowledge on organizational design and management in an ever-changing business landscape.
Industrial workers are mostly eager to get the best type of work environment in terms of health and safety, salary, first aid and favourable leadership style in order to meet their ends and sustain a living. Workers also want to maximize their income and not production capacity. This is why it become very necessary to create a conducive worker environment to ensure the effectiveness of the workers.

1.2 Statement of the Problem

The effect of the environment on organizational structure has been a subject of extensive research and interest among scholars and practitioners. As organizations operate in increasingly dynamic and complex environments, understanding how environmental factors influence organizational structure becomes critical for achieving sustainable performance and competitiveness (Donaldson, 2001).

Environmental uncertainty, characterized by unpredictability and volatility, poses challenges for organizations in making strategic decisions about their structure (Duncan, 1972). In such uncertain environments, organizations must determine how to balance the need for flexibility and adaptability with the requirement for stability and efficiency in their structures.

Environmental complexity, reflecting the diversity and interconnectedness of external factors, presents organizations with intricate challenges in managing their internal coordination and communication (Galbraith, 1973). Organizations in complex environments need to find ways to structure themselves effectively to navigate through the interdependencies and interactions with various stakeholders.

Moreover, the availability of resources in the external environment, known as environmental munificence, also influences organizational structure (Aldrich, 1979). Organizations operating in resource-rich environments may opt for more innovative and elaborate structures to capitalize on the abundance of resources, while those in resource-scarce environments may need to streamline their structures to optimize resource utilization.

Furthermore, technological advancements play a pivotal role in shaping the external environment, affecting the structure of organizations (Anderson & Tushman, 1990). Organizations facing technological disruptions need to adapt their structures to remain competitive and responsive to the changing landscape.

Despite the significance of these environmental factors on organizational structure, there is a need for a comprehensive understanding of the interplay between environmental dynamics and structural configurations. Existing research has provided valuable insights, but gaps remain in understanding how different types of organizations in diverse industries respond to specific environmental factors.

1.3 Purpose of the Study

The purpose of this study is an investigation of environment and its effect on organizational structure (a case study of Ecobank, Asaba).

The objectives of the study are stated as follows:

Ascertain whether there is a significant relationship between work environment and organizational productivity.
Find out the factors which contributes to an effective work environment in organization.
Find out whether work environment has an impact on workers efficiency thereby influencing organizational productivity.
Determine whether work environment influences organizational commitment and effectiveness.
Ascertain whether ergonomics promotes organizational performance.

1.4 Research Question

The research is guided by the following questions.

Is there a significant relationship between work environment and organizational productivity?
What are the factors which contributes to an effective work environment in organization?
Does work environment have an impact on workers efficiency thereby influencing organizational productivity?
Does work environment influence organizational commitment and effectiveness?.
Does ergonomics promote organizational performance?

1.5 Research Hypothesis

Ho: There is no significant relationship between work environment and organizational productivity.
Ha: There is a significant relationship between work environment and organizational productivity.

1.6 Significance of the Study

This research or study is motivated by the workers low level of performance in the industrial work place which has immensely contributed to the industrial to perform their allotted task has greatly contributed to the breakdown of many of our industries in Nigeria. However, worker environment is seen as an important factors that is responsible for worker’s performance. It is when workers are under a conductive atmosphere and given frings benefits such as transportation facilities that will enable us to make some possible solution on these problem and as well improved over industrial sectors and other establishment as a determinant of workers performance.

1.7 Scope of the Study

The scope of the study is limited to Ecobank situated in Asaba. The research will be conducted on the workers and employee performance in an financial organization like Ecobank. Some of the departments used for the research are; Laboratory, Maintenance human resources and account department that constitute the company. Both male and female workers will be studied. This will enable us to understand how conducive the environment is and how it affect the performance of the workers in Ecobank.

1.8 Limitation of the Study

The limitation of the study has not been easy task for any encounters in getting the management of Ecobank to cooperate in giving necessary approval to carry out this research to the organization based on some reasons best known to them, there was a lot of delay and restriction.

However, with many assurance given to them that the research was mainly and purely for academic purpose and that information collected will be treated in strict confidence and also with the help of the head of maintenance department and some of their managers. I was given the opportunity to carry on with the research.

1.9 Definition of Terms

Work Environment:

This is the totality of physical, emotional, sound, psychological and spiritual atmosphere of a work place.

Productivity:

The measure of how resources are brought together in organizations and utilized for accomplishing a set of results.

Employee Productivity:

Employee productivity (sometimes referred to as workforce productivity) is an assessment of the efficiency of a worker or group of workers. Productivity may be evaluated in terms of the output of an employee in a specific period of time.

Communication:

The act or process of using words, sounds, signs, or behaviours to express or exchange information or to express your ideas, thoughts, feelings and so on to someone else

Workload:

The term workload can refer to a number of different yet related entities. However, it is clear that cognitive workload results from mental processes when performing tasks, depending on the user’s capabilities and the task demands

Workplace Psychology:

Refers to the practice of applying psychological principles and practices to a work environment in order to solve problems and make improvements.

1.10 Organization of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, abnd selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on an investigation of environment and its effect on organizational structure using ecobank, asaba as a case study. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was on an investigation of environment and its effect on organizational structure using Ecobank, asaba as a case study. The study is was specifically carried out to ascertain whether there is a significant relationship between work environment and organizational productivity, find out the factors which contributes to an effective work environment in organization, find out whether work environment has an impact on workers efficiency thereby influencing organizational productivity, determine whether work environment influences organizational commitment and effectiveness, ascertain whether ergonomics promotes organizational performance.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent were staff of the selected Ecobank.

5.3 Conclusions

Based on the findings of this study, the researcher concluded that;

There is a significant relationship between work environment and organizational productivity.
The factors which contributes to an effective work environment in organization includes: adequate provision of work equipment, comfortable office layout, proper ventilation, effective occupational/safety practices, conflict management, interpersonal relations, leadership style.
Work environment has an impact on workers efficiency thereby influencing organizational productivity.
Work environment influences organizational commitment and effectiveness.
Ergonomics promotes organizational performance.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

To improve organizational performance, organizations should ensure that office design at the workplace does not affects employee concentration at work.
Organization should also provide adequate tools of work, office furniture should be comfortable in terms of height, posture and comfort to ensure that the physical working environment is safe for improved productivity by the employees.
Effective supervisor support is necessary as it will facilitate organizational performance and there is need to inform well in advance employees concerning important decisions like changes or plans for the future to ensure employees receive all the information they need in order to do their work well.
The management at work place should respect employees and treat them fairly by appreciating their input to ensure they feel valued by the organizations which they serve. At the place of work is where people spend more time thus the need to be happy and satisfied. The immediate supervisor should ensure that employees have good development opportunities to give high priority to job satisfaction.

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