ORGANIZATIONAL RIGIDITY ON OUTPUT PERFORMANCE

1.1 Introduction

Organizational rigidity is defined as restricted information-processing capabilities and reduced control in an Organization. The rigidity effects of organization that occur under conditions of resource scarcity and threat also occur in opportunistic environments characterized by resource abundance. As organizations acquire more resources, they become constrained in their ability to process information at the organizational levels of analysis. The reduced capacity caused by resource abundance may be even more problematic as it leaves organizations vulnerable at a time when their environment is most likely to become densely dynamic. To cope with today’s fast-moving, technology-driven external environment are at a significant competitive disadvantage, as they lack the capacity to produce meaningful output (Hult et al., 2002).

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 Study

Given the importance of stability in improving firm’s output performance, a number of studies have attempted to identify the factors that can enhance organizational rigidity (Koc & Ceylan, 2007). Currently one of the variables deemed to have great influence on output performance is organizational rigidity (Büschgens, Bausch, & Balkin, 2013; Lin, Donough, Lin, & Lin, 2013). Because organizational rigidity influences employees’ behavior, it may lead the personnel to accept output performance as a fundamental value of the organization and to feeling more involved in it (Hartmann, 2006).

The idea of viewing organization as having rigid is a recent phenomenon and it originated as an independent variable affecting employees’ performance and output performance. Coupled with the recent academic interest on this concept, researchers have sought to identify and elaborate theoretical construct that underpins rigidity in order to develop a more comprehensive theory. Organization(s) constitute an element of a society and people bring different ideology from their own society into the organization. Organizations possess the paradoxical quality of being “part of” or “a part” of a society; which are embedded in a social context. Then, the norms that has been keeping the company going must remain unchanged. The organizations are communities in their own right with distinctive rules and values, organizational rigidity fosters success and it is therefore one of the most important factors that can account for success or failure of an organization.

Organizational Rigidity is an anthropological term that refers to the underlying values, beliefs, codes of practice that makes a community what it is (Alvesson, 2002; Huczynski and Buchaman, 2001; Smith, Kleiner & Brian, 1987). Numerous theoretical debates have centred on whether organizational rigidity should be managed in the same way that other organizational variables can be controlled.

Organizational development has some particular features that can increase sustainability on basis of effectiveness. The enhancement in output performance contributes to employee commitment while norms, values and objectives contribute in maintaining rigidity in an organization (Awadh & Saad, 2013). Output performance is comprised of the actual output or results of an organization as measured against its intended outputs (or goals and objectives). One of the most important reasons that explain the interest in organizational rigidity is the assumption that certain organizational rigid values lead to an increase in output performance (Ilies & Gavrea).

Output performance comprises the actual productions as well as outcomes or outcomes of an organization which are measured against its expected outcomes. Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Organizational Rigidity on Output Performance.

1.3 Statement of Problems

Investigation revealed that organizations not only want to survive but also to grow and take over or even overtake existing competitors. These compels organizations to devise strong and unchangeable values, beliefs, behaviours, norms and strategies targeted at not just attracting, cultivating and retaining their employees but also giving the organization competitive edge. Consequently, lack of these rigid values, beliefs and norms (organizational rigidity) could result in undesirable outcomes such as job dissatisfaction, lack of commitment, absenteeism, low productivity and overall poor output performance.

In a UK study, Ogbonna and Harris (2001) research on 50 companies reported that about 94% of organizations were undergoing or have experienced unchangeable value and pattern. Such empirical evidence showed that there is a gap between academic theories (which are critical of the idea of planned rigid values) and the actions of the practitioners, (who are the ones involved in the various forms of organizational interaction). This research will examine the different perspectives to organizational rigidity and the classification of the concept as an asset or liability. The reason being that human resource of every organization is its backbone, such that the successes or a failure of any organization now depends on the workers.

1.4 Aim and Objectives of Study

The aim of the study is to examine the Organizational Rigidity on Output Performance. In achieving this aim, the following specific objectives were laid out as follows:

1. To examine the influence of Organizational Rigidity on Output Performance in an organization.
2. To find out the determinants of output performance in an organization.
3. To analyze the advantages and disadvantages of organizational rigidity.

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:

• What is the influence of Organizational Rigidity on Output Performance in an organization?
• What are the determinants of output performance in an organization?
• What are the advantages and disadvantages of organizational rigidity?

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 organization rigidity and output performance in an organization.
• H1: There is a significant relationship between organization rigidity and output performance in an organization.

1.7 Significance of Study

The following are the significance of this study:

1. The findings from this study will form a useful organizational framework for business managers, other organizational stakeholders and the general public in managing organizational rigid values and norm to produce the needed output performance.
2. This research will be a contribution to the body of literature in the area of organizational rigidity and output performance, thereby constituting the empirical literature for future research in the subject area.

1.8 Scope of Study

The scope of the research is focused on Organizational Rigidity on Output Performance. This study is limited to Cadbury Plc, a Multinational Organization in Nigeria.

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 Organization of the Variables

Dependent Variable: Organizational rigidity

Independents Variable: Output performance

1.11 Definition of Terms

Performance: Is deemed to be the fulfillment of an obligation,

Output: The amount of something produced by employees, machine, or industry

Rigidity: Inability to be changed

Values: Principles or standards of practices/behaviour; organizational judgement of what is important in the work settings