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Abstract
The study examined the relationship between organizational structures and employee job commitment of selected oil servicing firms in Port Harcourt. The survey research design was adopted since the study was to ascertain the relationship between organizational structure and employee job commitment of selected oil servicing firms in Port Harcourt. Respondents selected from five oil servicing firms in Rivers State which include Thompson and grace Investment LTD, Eleme Junction and Buske Consultant Limited, Oyigbo Road, in Port Harcourt. The Taro yemens formula was used to determine the sample size of 96. Data collection was done using a structured questionnaire. A self-design questionnaire on employee empowerment and organizational success was used specifically for data collection, recording and measuring data or research variables. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage. The study revealed that complex structure, Functional structure and centralized structure influences employee commitment of oil servicing firms in Port Harcourt, Rivers State. based on the finding of the study, we recommend that the policies of the organizational should be flexible so that when there is change in the structure of the organization, the organization will still be effective and with the aid of organization structure in multinational firms, managers and executive will concentrates on their core competence of producing goods and services.
Table of Contents
Title Page i
Cover Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgements vi
Abstract vii
Table of Contents viii
List of Tables x
List of Figures xi
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problems 3
1.3 Objectives of Study 4
1.4 Research Questions 4
1.6 Scope of the Study 5
CHAPTER 2 7
REVIEW OF RELATED LITERATURE 7
2.1 Conceptual Framework 7
2.1.1 Concept of Organizational Structure 7
2.1.2 Dimensions of Organizational Structure 10
2.1.3 Concept of Employee commitment 13
2.1.5 Organizational Structure and Employee Job Commitment 16
2.2 Theoretical Framework 19
2.2.1 Contingent Theory (Burns and Stalker, 1961) 19
2.2.2 Classical Organization Theory 19
2.3 Empirical Framework 19
CHAPTER 3 22
RESEARCH METHODOLOGY 22
3.1 Research Design 22
3.2 Population of the Study 23
3.3 Sample Size 23
3.4 Methods of Data Collection 24
3.5 Questionnaire Design 25
3.6Data Analytical Techniques 26
CHAPTER 4 27
DATA PRESENTATION AND ANALYSIS 27
4.1 Data Collection and Presentation 27
Table 4.1: Questionnaire Administration and Retrieval 27
4.2 Data Analysis 28
4.3 Discussion of Findings 31
CHAPTER 5 33
SUMMARY, CONCLUSION AND RECOMMENDATIONS 33
5.1 Summary 33
2. Functional structure influences employee commitment of oil servicing firms in Port Harcourt, Rivers State. 33
3. Centralized structure influences employee commitment of oil servicing firms in Port Harcourt, Rivers State. 33
5.2 Conclusion 33
5.3 Recommendations 34
References 35
APPENDIX I 36
Appendix II 37
List of Tables
Table 4.2: showing the age of respondents 28
Table 4.4: Showing the Educational Qualification of the Respondents 29
Table 4.5: Showing the Marital Status of Respondents 29
Table 4.6: If the complex structure affect the employee commitment of oil servicing firm. 30
Table 4.7: If functional structure affects the employee commitment of oil servicing firms. 30
Table 4.8: If the centralized structure affects the employee commitment of oil servicing firms in Rivers state. 31
List of Figures
Fig. 2.1: A Conceptual Framework on Organizational Structure and Employee commitment 7
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Commitment is dedication to a particular organization, cause, or belief, and a willingness to get involved. Workers commitment is the state or quality of being dedicated to a cause or activity. It is an engagement or obligation that restricts freedom of action. Workers Commitment is conceived in the three forms identified in literature, as affective, continuance, and normative commitment (Khan, 2013). Workers commitment is a condition in which an employee recognizes himself/herself with a particular organization and its objectives, and wants to remain its participant. A study recommends that workers commitment guides to lesser degrees of both absenteeism and turnover (Khan, 2009).
Organizational structure is one construct that can trigger employee commitment in an organization today. Firms have organizational structures that show the relationship between the company’s employees and the responsibilities of said employees. Each firm’s organizational structure is different and depends on its specific needs.
Organizational structure is how job is formally divided, grouped and coordinated (Sablynski 2003). It is the anatomy of the organization, providing a foundation within which organizations function. However, Nnabuife (2009) visualizes organizational structure as the setting up a structure or mending an already existing one to suit the organizational environment and the demands of technology. From the views of Nnabuife, structure is a factor of technology. Organizational structure influences the way in which work flows in a company, therefore, different design or structure can help or hinder different strategic objectives and also aid or hinder employees in their role. Structure can as well dictate the means by which strategies are formed. However, employees performance in brewing industry in Nigeria examined by various structural dimensions.
Sablynski (2003) defined organizational structure as “how job task is formally divided, grouped and coordinated”. According to Dalton (1980), “organizational structure may be considered the anatomy of the organization, providing a foundation within which organizations function”. Dalton categorized the organizational structure into traditional hierarchical organization and high performance organization. Traditional hierarchical organization is any long, complex administrative structure with job specialization and complex rules based on the principle of hierarchical authority, job specialization and formal rules (Machinsky, 1990).
Organizational structure can be viewed as the way responsibility and power are allocated inside the organization and work procedures are carried out by organizational members (Teixeria et al., 2012). Corporate effectiveness captures organizational performance plus the myriad internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation, such as corporate social responsibility.
Organizational structure can be viewed as the way responsibility and power are allocated inside the organization and work procedures are carried out by organizational members (Teixeria et al., 2012). Daft (1998) mentioned eight dimensions of organizational (Mugizi, Bakkabulindi & Bisaso, 2009) corporate effectiveness captures organizational performance plus the myriad internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation, such as corporate social responsibility.
According to Hart as quoted by Baridam, (1995). A well design organizational structure is a kind of skeletal framework that delineates the level of authority and responsibility; define information channel and establishers of primary control point within the organization. The study therefore is determined to examine the relationship between organizational structure and employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State.
1.2 Statement of Problems
The organizations are faced with mixed performance. Evidences from the subsector confirm that quite a number of organization performing very poorly, in some cases, they goes into liquidation, while few others are performing excellently well using all known performance indicators, for instance, Nigeria multinational firms have been paying dividend to its shareholders consistently for the past twenty years. Besides payment of dividend, almost all other performance indicators have been on the positive trend. However, the excellent performances of few of them are still worrisome as some multinational firms went under within the last twenty years.
These problems encountered by business organizations in choosing suitable forms of structure are complexities associated with the recent shift from authoritarian to decentralized structures stressing employee empowerment.
Inability of managers to identify the best form of structure that should be adopted by the individual organizations, inability of employees to adapt to existing and changing structures, and the difficulty in maintaining a stable structure as a result of the ever changing business environment. Therefore this study is determined to examine the relationship between organizational structure and employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State.
1.3 Objectives of Study
The main objective of the study is to examine the relationship between organizational structures and employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State.
The specific objectives are as follows:
1. To examine the relationship between complex structure and employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State.
2. To examine the relationship between functional structure and employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State.
3. To examine the relationship between central structure and employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State.
1.4 Research Questions
With the above objectives in focus, the study seeks to find answers to the following questions:
i. To what extent does complex structure influences employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State?
ii. To what extent does functional structure influences and employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State?
iii. To what extent does central structure influences employee job commitment of selected oil servicing firms in Port Harcourt, Rivers State?
1.5 Significance of the Study
This study will assist organizational on the tools techniques to employ in managing employee in their respective department.
This study is pertinent to trade unionist in their respective organizations.
This study is justified because it will assist in the stability and relative profitability in the organization particularly in the period of economic recession.
This study will also contribute in enriching the literature in organization particularly in management sciences in general.
1.6 Scope of the Study
The scope of this study is delimited into the followings:
Content Scope: The study focus on employee job commitment that is the dependent variable measure by affective commitment, Normative Commitment and continuance Commitment while independent variable is organizational structure having a dimension of complex structure, functional structure and central structure.
Geographical scope: This study covers of selected oil servicing firms in Port Harcourt, Rivers State which include Thompson and grace Investment LTD, Eleme Junction and Buske Consultant Limited, Oyigbo Road, in Port Harcourt, Rivers State., to investigate the impact of organizational structure and employee job commitment.
Unit of Analysis: The unit of analysis includes senior and junior staff of selected selected oil servicing firms in Port Harcourt, Rivers State which include Thompson and grace Investment LTD, Eleme Junction and Buske Consultant Limited, Oyigbo Road, in Port Harcourt, Rivers State.
1.7 Limitation of the Study
The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study. The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.
1.8 Definition of Terms
Structure: This can be defined as a social unit that is constructed or reconstructed to seek specific goods through division of labour and specialization.
Complex structure: It refers to the number of occupational specialities included in an organisation and the length of training required of each.
Functional structure: It is the degree to which jobs are standardized.
Central structure: It refers to the concentration of decision-making authority at the upper levels of an organization.
Employee commitment: this is simply employees’ attitude to organization.