(A CASE STUDY OF INDORAMA PETROL-CHEMICAL ELEME, PORT HARCOURT RIVERS STATE).
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ABSTRACT
This project is carried out with the aim of determining the impact of organizational structure on organization efficiency with reference to Indorama Petrol chemical Eleme Port Harcourt Rivers State. In carrying out this research work a descriptive research was conducted and a simple random sampling technique was used to select fifty five (55) staff in Indorama petrol chemical, Fifty five (55) questionnaire were issued and fifty were also filled and return and five was not returned due to the absent of some workers. They findings the study revealed that organizational structure would enhance the efficiency and productivity of Indorama. Also among the finding that was made in this research was that organizational structure when properly managed would reduce personnel cost of closing business. The finding also rewarded that if an organization is well structured in a way that allow easy flow of communication from downward to upward to down and it would enhance workers efficiency. In conclusion it is adduced that policies of the organization should be flexible so as to allow for adjustment when there is change in the structure, also with the aid of a well designed structure in Indorama Petrol Chemical managers and executives will concentrate on their core competent of producing goods and it will enable employees to respond quickly to the changing variable in the organization.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
According to Abtahi et al (2003) the key role of organization structure to improve productivity. This study is aimed to explore the structure forming elements (complexity, formality, and concentration) on one hand and human resources management efficiency on the other hand. Appropriate organizational structure, efficient procedure, safe instruments and equipment, balanced work environment and, above all competent and qualified man power are essentials that should be considered by managers to achieve optimal efficiency.
According to Taheri (2006) organizational structure in a real sense of word, has a remarkable effect and is inclusive.
According to Martinelli (2001) he argued that the type of organizational structure adopted by a firm will depend on the nature of the particular organization in question. The form which the organizational structure takes may be represented periodically by an organizational chart.
Nelson et al (2011) opine that departments in organizations can be categorized into various units such as manufacturing, sales, marketing, advertising, and so on. They added that departments are connected to shape the organizational structure.
Quangyen et al (2013) argued that structure of an organization gives it the shape to carryout it purpose in the business environment.
Tamunebi(1996) sees organizational structure as a framework of role responsibilities that is created for co-ordination of the activities of people and units that work toward the achievement of responsibility is accomplish. The structure of organization eliminates fear, frustration, chaos, function and inability to pull in the same direction that would have arisen due to lack of an organogram. Considering what other writers have said about the topic, we shall add to knowledge by focusing on organizational structure and efficiency Indorama petrochemical company Rivers State.
1.2 STATEMENT OF THE PROBLEM
Most organization paid lip production services to personal problem of which is the reason why we optimize organizational structure as a solution to personnel problems and also as a tool for enhancing efficiency and productivity. Structure play a vital role in directing the activities of organizational members towards goal attainment, some organization especially small one start off without any formal organization chart but with time the worker and manager find out that they can no longer cope alone and as to employ some people to help out. He went ahead to re-examine his objectives, assign tasks and responsibilities, delegates authority, define level of authority and the activities of his helper this a structure is born.
The aim of this research work is to study the organizational structure and its impact on Organi-Indoroma Petrol-Chemical. Therefore question that will reflect this purpose are as follows.
1.3 OBJECTIVES OF THE STUDY
With the dynamic nature of business environment in the country, a systematic approach to determine structure as it affects the efficiency and productivity of a firm become very necessary.
Hence this study is aim at providing an insight into the extent to which organizational structure tends to impact on firm efficiency and productivity therefore the study is aim at;
- Finding out if organizational structure will enhance better performance.
- To determine how structure influences organization efficiency.
- To examine the determinant of structure in organization.
- Identifying problems &offering meaningful suggestion for effective organizational structure in indoroma petrol-chemical.
1.4 RESEARCH QUESTIONS
This research work is aim at providing some insight into the following question.
- Will a firm perform better when structured?
- Will organizational structure enhance workers performance?
- Does tall structure enhance organizational efficiency?
- Is there any relationship between efficiency of personnel cost reduction when structuring organization?
- Does flat structure enhance organizational productivity?
1.5 SIGNIFICANCE OF THE STUDY
Considering the function of organizations especially that of Indorama petrol-chemical which are into poly-olefins production of a range of polyethylene and polypropylene products require the relevance of structure in the provision of conducive environment in which organization cannot be over emphasized.
The research project on completion will highlight the importance of structuring as it will help managers to determine the impact of structure on organization. This work will also identify the basic concept on which structuring relies, regardless of the type and composition as well as contribute to the body of the existing knowledge in management science, especially in the realizing of organization efficiency and productivity.
1.6 SCOPE OF THE STUDY
The scope of the study is limited to Indorama petrochemical, eleme, port Harcourt. It will only cover the area of organization structure and its impact on efficiency and productivity in an organization. A research to determine or assess organizational structure should cover a wild population to give an accurate and efficient production. But due to limit on the area of time &fund this research could not cover a wide area.
Furthermore, the near secrecy with the respondent answer to question makes it difficult to determine the impact of organizational structure activities in company.
1.7 LIMITATION OF THE STUDY
This study is affected by certain constraints such as time frame, inadequate material and financial resources, the near secrecy in the respondent answer to question.
1.8 DEFINITION OF TERMS
Cost Reduction: This where the actual cost incurred in organization structure is less than the standard of no structure.
Efficiency: This is the process of doing something well with no cost.
Organization: This can be defined as a social unit that is constructed or reconstructed to seek specific goods through division of labour and specification (Tamunoebe1969).
Productivity: This refers to the rate at which workers, material, machine is put into production input and amount of goods or services.
Structure: This refers to the state of being well organized or planned with all part, unit linked together.
Organizational Structure: Is the formal configuration between individuals and groups concerning the responsibilities, allocation of tasks, and authority in the organization.
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