EFFECTS OF ORGANIZATION STRUCTURE ON EMPLOYEES PERFORMANCE

ABSTRACT

This research work focuses on effects of organization structure on employees’ performance (a case study of first bank plc).

The objective of this study is to access what effective organization structure is, the theory and practice on organization performance leading to the mutual satisfaction of all the stakeholders, government, academic, business firms, employees and practitioners.

The investigation was carried out with the use of questionnaire to gather information from the members of First bank plc.

A number of 50 (fifty) questionnaires were distributed but only 31 (thirty one) was collected and analyzed. Chi square method was used in analyzing the questionnaires and test of the hypotheses.

Two (2) hypotheses was tested, the result revealed that there is a significant impact of effective organization structure on workers performance and effective organization structure affects the performance of workers.

It is recommended that having an organization structure in place is very important for any organization; better communication and transparency is recommended.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF STUDY

In modem society, most people spend their working lives in an organization of some sort; therefore have firsthand experience of the corporate life. This study considers some of the findings and work that help to provide a better understanding of the nature of organizations which also includes the examination of the structural aspects of an organization and how it impacts on the performance of employees in an organization.

An organization is a collection of interacting and independent individuals who work towards common goals and whose relationship are determined according to a certain structure.

Arnold et al. (1998), this definition provides a useful starting point for an examination of organizations. The organization design is the overall arrangement of the various roles, processes and their relationships in the organization. It is a means to accomplishing the overall goal. The structure is not an end itself.

Performances of employees are based on the influence of some factors (motivations) which are as follows:

CLARITY OF GOALS AND DUTIES: Employees of Nigeria LNG Ltd are motivated due to the clarity of goals and objectives of the company in which everybody knows what the term is working towards and what he can contribute If the objective and goals are stated, it will be easy to select an organization most relevant actions for achieving such goals are objectives.

INDIVIDUAL CONSIDERATION: When assigning adequate measures or safeguards for management control, variation in individual ability are considered,

FLEXIBILITY CONSIDERATION: The organization structure of the company is flexible which has accommodated changes that may occur during the firm activities.

UNITY IN COMMAND: Each employee report and responsible to only superior at any point in time for each or all the functions he performs. No employee is subjected to orders from more than one source.

SPAN OF CONTROL: The Span of control in the sense that the number of workers supervised by and reporting to an officer at any point in time is reasonable. At the organization, the number of subordinates reporting to an executive is between 4 and 6 while 20 at bottom level.

ADEQUATE RESOURCES: For a useful organization structures adequate resources must be made available for each person to undertake his assigned ‘task successfully.

EVALUATION CRITERIA: There are known criteria and standards for measuring and appraising individual and departmental performance.

AVAILABILITY OF SYSTEMS TO MANAGE STAFF TRAINING AND PERFORMANCE: This is another factor that motivates staff of Nigeria Liquefied Natural Gas Ltd to perform effectively. For efficiency and increase in performance there must be well-defined processes for defining, creating, capturing and acting on knowledge. Training and development programs have enhanced staff of Nigeria LNG ltd performance. Therefore, employees of Nigeria LNG ltd have been motivated by the system in place for staff training program.

The non-motivation of staff performance could be that if the provision of environment for learning and development is not conducive, it will affect staff performance and which will bring low productivity in the organization.  Therefore, environmental condition should be considered.