ORGANIZATIONAL STRUCTURE AND EMPLOYEE EFFECTIVENESS

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ABSTRACT

Knowing and designing the bio mechanics organization and improving the effectiveness of employee’s are one of the most important challenges for firms that face the transition from the industrial economy to an economy base on knowledge. However, this work briefly explores the failures of the traditional management of notion of rationality to address the problem of employee’s effectiveness and argues a deeper understanding of the paradigm of the employee, whole person is necessary to attain the desired effectiveness. Thus, the author reflected and investigated the circumstance that confounds the study via survey study method that focused on 15 public “consumer” on selected government parastatals with population of 225, gotten through a simple random method. However, questionnaire and oral interview was used to analyze the data. Our findings and conclusions, portrays that an organization needs to have a structure/frame work that is based on dominance or conscience and friendship relation which develop a work pattern and style that  maximizes effectiveness. Again, it was clear that an organization may be structured in many different ways to meet their objectives-importantly work efficiency and effectiveness

CHAPTER ONE

1.1.    BACKGROUND OF THE STUDY

Organizations whether industrial or social service oriented can be better understood based on its nature and structure highlights its management parameters. At the most elemental level an organization is nothing more or less than a relationship with a purpose. According to Covey (2004), that purpose is aimed at meeting the needs of one or more persons or stakeholders. Every organization is complex and unique and can be identified by two specific characteristics, the formal and the informal structure.

Most organizations are complex and structured to confirm to an established set of policies and principles. According to Koko (2004), these laws are sometimes very rigid and therefore restrict adequate social interactions between individual members as well as their functions.

However, the major concern of individual managers in the past was on how best to improve effectiveness by enforcing work concern on employees conversely, Convey (2004) opine that the highest challenge inside organizations is to set them up and run them in a way that enables each person to inwardly sense his or her innate work and potential for greatness and to contribute his or her unique talents and passion to accomplish the organization’s purpose and highest priorities in a principled centered way.

Beside, Ukeje (1992) affirmed that an organization is structured to help define lines or responsibility and authority. In other words, managers should know which employee they are responsible for, while the employees know who to receive order from. Since in a unit shell organizational structure should refer to the formal arrangement of operations and activities within an organization.

Without equivocation the structuring of an “organization” can take several forms. Any form chosen by any organization depends on the purpose of the organization. According to Ekerete (1997), the structuring must be interplay of the people (workers) and their functions. However, Simon (1960), alludes that: organizational firms must be a joint function of the characteristics of human and their tools and the nature of the task environment.

According to Ukeje, et al (1990), some organizations are structured to the primary skills they use in their job; in some others, it is according to their product geographical location or the customers they serve. This is called individual organizational arrangement. The lateral structure is to co-ordinate functions among the members. The structure is there to give employees opportunity to report to two heads while the line and staff structure is meant to separate staff into directly involved in the main function of the organization and those doing the supportive.

On the contrary, the major concern of the industrial managers in the past was on how best to improve effectiveness by enforcing work concern on employees. Conversely Koko (2004), affirmed that managers who perceived employees as economic machines in line with the scientific management concept coerced employee effectiveness through extrinsic rewards. Thus, man was therefore compensated for hard work and punished for non-compliance with organizational plans that were designed to increase employee outputs.

Without rambles, from the afore mentioned organization structures must be design to work, to permit contributions to members of a group and to help people gain objectives efficiently in an ever changing task/work environment. Based on this, the author of this work attempts to investigate “organizational structure and workers productivity.

1.2     STATEMENT OF THE PROBLEM

          Organization chord is a document that depicts the structure of an organization. The structure term according to Khandwalla (1977), refers to more or less permanent arrangement of the parts of a whole; therefore the design of work of individual who have a relationship and shared purpose may not be fully represented.

Again, Covey (2004) alludes that: the most valuable assets of a 20th century companies, were its production equipments, what that of a 21st century institution, whether business or non-business will be it knowledge workers and their productivity in essence, Covey (2004) said that the power of the extra ordinary service structure of any organization of today would be in fundamental view of people (Employers, Employees, and customers). In view of this, the dignity and need of meeting of the whole person (hearts, body, mind and sprit) that catalysis a workers potential to achieve a desired result were not in consideration.

Subsequently, Nwachukwu (2000), Covey (2004) adduced that one of the greatest manager’s encounter is that of working to Cascade and TRANSLATE the corporate vision from TOP feet into actionable line of sight behaviors among that line workers to achieve critical objectives, even if managers have been involved in the development of the mission meets road. This is not easy for them. They think of how much more productive they could be, if they had the right people working on the right thing, at the right time in vital few projects and goals that ultimately matter most.

          In addition, Awujo (200), posited that at relationship level, most organization are filled with co-dependency. Though, organizational systems controlling management practices do much to foster this co-dependency; the problem is compounded by the fact that so many people have been raised being compared to others. These powerful influences cultivate a scarcity mentality, so that many employees have a hard time being genuinely for the success of others.

Supporting this at the personal level, some organizations are filled with bright talented creative people at every level who feel straitjacketed, undervalued and uninspired. They are frustrated and do not believe they have the power to change things because the structure portrays them as anyone other than accountable and choice making individual.

1.3     PURPOSE/OBJECTIVES OF THE STUDY

          The purpose of this study is to examine the relationship between organizational structure and employee effectiveness.

THE OBJECTIVES TO BE ACHIEVED ARE AS FOLLOWS:

To examine the relationship between functional structure and employee effectiveness.

To examine the product or geographical structure of employee effectiveness.

To examine the relationship between matrix structure and employee effectiveness.

1.4     RESEARCH QUESTIONS

          The following research questions are posed to give this study.

1.       To what extent is functional structure related to employee effectiveness.

2.       How those product or geographical structure affect employee effectiveness.

3.       To what extent is matrix structure related to employee effectiveness.

1.5     THE SIGNIFICANCE OF THE STUDY

The significance of this study cannot be under-estimated because.

          The study will equip industrial and corporate managers as well as administration with the knowledge, sophistication and wisdom of structuring their organization with the focus of employee’s relevance to attain organizational mission, goals and objective.

The study would be of help to many people in business and non-business institutions, to be aimed with the indebt knowledge of different desirable structure that give rise to the super-ordinate sub-ordinate relationship.

It will equip the general readers, learners, captains of industry and strategist with the modest, on how to structure organizations and run it with the aid of the diagnosis of the employee that will always produce the greatest and most enduring personal and organizational achievements.

It will be a good source of information to scholars that would carry out similar or further research study about the organizational structure and employee effectiveness.

It will help organization solve the problems of human capital micro management.

1.6     SCOPE/DELIMITATION OF THE STUDY

This study is delimited into the following

1.       Content scope

2.       Geographical scope

3.       Unit of analysis

By the content scope, the study is in the immediate domain of human resource management with a major focus of organizational structure, task accomplishment.

Considering how dynamic and innovative the economy generally is, the study has a geographical scope which covers government parastatals in Rivers State. The study focused on the macro unit level of analysis which involves a study of organizations.

1.7     LIMITATION OF THE STUDY

Some problems were encountered in the course of investigating the issue. The problems include:

Some of these texts used in the review of literature were authorized by foreigners who knew nothing about Nigeria business organizational setting and the productivity psychology of Nigeria company workers.

1.       Out of 100 copies of questionnaires that were distributed, only 60 was returned and used.

2.       Lack of money to buy rich literatures needed to make this work pretty laudable.

3.       The direction of the author’s attention to other studies in order to avoid academic lag.

1.8     DEFINITION OF TERMS

CUSTOMER SATISFACTION:       It is a measure of how products and services supplied by a company meet or surpass customer expectation customer satisfaction, or percentage of total customers, whose reported experience with a firm, its products or its services (ratings) exceeds specified satisfaction goals.

FUNCTIONAL STRUCTURE:        Is one of the most common organizational structures. Under this structure, the organization group’s employees according to a specialized or similar set of roles on tasks.

MATRIX STRUCTURE:        Is a company structure in which the reporting relationships are set up as a grid or matrix rather than in the traditional hierarchy. In other words, employees have dual reporting relationships generally to both a functional manager and a product manager.

 ORGANIZATIONAL STRUCTURE:       Is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization.

PRODUCTIVITY:         Is a measure of the efficiency of a person, machine, factory, system, etc. in converting inputs into useful outputs. Productivity is imputed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period.

TASK ACCOMPLISHMENT:          Is the idea that search results should be determined by the objective of the user performing the search and the satisfaction the user experiences when they receive those result. 

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