The Role Of Organizational Structure And Management Efficiency

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM

Chapter One


1.1 Background of the study

Many theories of organization have been propounded by the management scholar’s right from the classical era of contemporary period. These management scholars has common opinion that all profit oriented organization have sets of objective to be achieved, issues are 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 organizational structure therefore is the framework on which an organization an organization is built. It is a network of authority and role of relationships (Akala, 2002). It is pattern of relationships among the various people occupying the position (Nwachukwu, 2008). From the following definitions, organizational structure may be for the purpose of this study be define as the sectional network in interaction and relationship between positions, their functions and occupants and it means through which management attempts to achieve predetermined organizational goals.

The organizational structure provides the guidelines for clarifying and communicating the line or responsibility, authority and accountability within the firm. Organization structure shows clearly the authority relationship in an organization, it vividly defines the centers of authority. Organizational structure provides a framework within which delegation and assignment of responsibility can perfectly take place. It shows line of communication and also helps to provide an effective mechanism for monitoring performance and taking corrective actions.

Obviously, in an organization where the above point exist, the net result is the harmonization of operation activities, enhancement of friendly atmosphere among workers in the organization and the smooth attainment of the organizational objectives. The inappropriateness of the organizational; structure cause lack of co-ordination, low morale, back passing , role clash of responsibilities and weak financial base in most Nigeria business. Therefore when an organization is structured well, chain of command will be known to the employee starting with the highest hierarchy of power, with this the workers will only be answerable to only superior and there will be avoidance of conflict or role clash between the employer and the employee. Through this the motivation performance of the employee will be effective because they work in unity to perform their respective responsibilities and still fell secure in their scope and limited of their jobs.

This include who reports to who, levels and patterns of communication, the specific functions of members of the organization, the rules regulation and procedures that govern individual activities.

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