EFFECT OF ORGANIZATION STRUCTURE ON EMPLOYEE PERFORMANCE

1.1 Introduction

The organization structure is the basic framework within which the executive decision making behavior occurs. The quality and the nature of the decisions made are influenced by the nature of the structure. Organization as an element of management is concerned with the grouping of activities in such manner that enterprise objectives are attained. Organizational structure across the world has attracted widespread attention in terms of research and debate among organizational managers and academia. Managers who set out to design an organization structure face difficult decisions. They must choose among a myriad of alternative frameworks of jobs and departments. The first decision focuses on individual jobs, the next two decisions focus on departments or groups of jobs, and the fourth decision considers the issue of delegation of authority throughout the structure (Gibson et al., 2003).

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

1.2 Background of the Study

The purpose of structure is the division of work among members of the organization, and the co-ordination of their activities so they are directed towards the goals and objectives of the organization. An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to some one common aim and objectives (Laurie, 2017). Organizations are a number of clustered entities the structure of an organization is usually set up in one of a variety of style dependent on their objectives and ambiance the structure of an organization will determine the modes in which it shall operate and will perform (Lundy, 2018).

Organization structure allows the expressed allocation of responsibilities for different entities ordinary description of such entities is as branch, site, department, workgroup, and single people. An organizations structure is the set of formal, the planned relationships between the physical factors and personal required for the performance at these function. Organization structure is the pattern of relationship among positions in the organization among members of the organization (Goldsmith, 2015).

Organizational structures make possible the application of the process of management and creates a frame work of order and command through which the activities of the organization be planned, organized, directed and controlled. He went further to say that organizational structure define tasks and responsibilities, work roles relationships and channels communication. Organizational structure is primarily set up for the purpose of promoting co-operation and facilitating the exercise of executive leadership. It permit the relation of co-coordinated thought and action even though organizational relationship become more complete with growth (Agu, 2017).

Birkinshaw (2016) said that organizational structure is a way of dividing responsibilities among executive. It is meaningless unless supported appropriate systems and a consistent culture. However, organization structure is still surprisingly informative about strategic priorities and the work going on, so it is as good a place to start as any” the type of organization structure depend on the nature of that particular organization. The form which the organizations structure take may be presented pictorially by an organization chart (Cloke, 2018). The chart is useful since it aids in locating properly either positions or functions and it shows the lines of responsibility authority and accountability. Organizational structure shall be adaptive to process requirement aiming to optimize the ratio at effort and input to output. In effective organization structure shall facility working relationship between various entities in the organizational units. Organizations shall support commands for coping with a mix of orders and a change of conditions while performing works (Cowling, 2017).

Organization structure is clearly important for any organization there are likely to be fewer problem of structure the distribution of task, the definition of authority and responsibility and the relationship between members of the organization an be stabilized on a more personal and informal basis with increasing size, however, there is greater need for a carefully designed and purposeful form organization there is need for a formal organizational structure (Miller, 2018).

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Effect of Organization Structure on Employee Performance.

1.3 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 (Mintzberg, 2017). The problems that are encountered therefore, are problems of duplication of tasks and repetition of process ((Udoye, 2015).

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 and Employee Performance of Access Bank PLC in FCT Abuja.

1.4 Aim and Objectives of the Study

The aim of the study is to investigate the Effect of Organization Structure on Employee Performance using Access Bank PLC in FCT Abuja as a case study. In achieving this aim, the following specific objectives were laid out as follows:

1. To establish the extent to which communication affect organization structures on employee performance in Access Bank Plc.
2. To determine how supervision affects organization structures on employee performance in Access Bank Plc.
3. To find out how leadership affects organization structures on employee performance in Access Bank Plc.
4. To establish whether motivation affects organizational structures on employee performance in Access Bank Plc.
5. To suggest or recommend ways through which the performance of Access Bank Plc can be improve.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• To what extent does supervision affects organization structures on employee performance in Access Bank Plc?
• Does communication affect organization structures on employee performance in Access Bank Plc?
• To what extent does leadership affects organization structures on employee performance in Access Bank Plc?
• To what extent does motivation affects organizational structures on employee performance in Access Bank Plc?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There is no significant relationship between Access Bank PLC organizational structure and employee performance in FCT Abuja
• H1: There is a significant relationship between Access Bank PLC organizational structure and employee performance in FCT Abuja

1.7 Significance of the Study

The study was of great significance to management in assisting to better understand the type of organizational structure that gives employees adequate motivation which in turn effects on organizational productivity. The study on the effects of project organization structures on employee performance brings in new knowledge to the field of research and other related disciplines.

Secondly, departments that exercise project management and especially on organization structure on employee performance was aided by this study in making informed decisions that relate to adoption of appropriate project management practices to ensure successful completion of projects.

Thirdly, other public institutions acquire an informed research study in order to achieve organization projects goals that meet global standards while maintaining the core objective of the organization thus building a good reputation through the appropriate project management practices.

Fourthly, project organization structures are aided by the study in understanding and employing the various proactive methods in projects success and saving on costs as they participate in employee performance by putting the relevant project management practices in place.

Finally, Organization entities find it not only essential to conform to projects policies but also ways on how to come up with better practices for the realization of success of various projects on a universal scale.

1.8 Scope of the Study

This study is aimed at examining organization structure and managerial effectiveness with a view to examine the factors in the organizational structure that could affect managerial effectiveness. The study will be limited to Access Bank Plc FCT Abuja.

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.10 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.