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Abstract
The study examined the relationship between organizational structures on employee performance in multinational firms in Rivers State. The survey research design was adopted since the study was to ascertain the relationship between organizational structure and employee performance of selected multinational firms. The population of the study was made up of 178 staff of the selected multinational firms. The sample size of the study was 123. The instrument used for data collection was interview and questionnaire method which are seen as being more effective and stable for a research of this nature. The study shows that there is relationship between organizational structure and employee performance. Based on the findings of the study the policies of the organizational should be related flexible so that when there is change in the structure of the organization, the organization will still be effective, with the aid of organization structure in multinational firms, managers and executive will concentrates on their core competence of producing goods and services and a well planed organizational should be encouraged because of the enormous benefit associated with it, like cost saving, reduction in personnel cost and also as a means of enhancing efficiency and increasing productivity.
Table of Contents
Title Page i
Certification iii
Dedication v
Acknowledgements vi
Abstract vii
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
1.3Objectives of Study 4
1.4 Research Question 5
1.5 Research Hypotheses 5
1.6 Significance of the Study 5
1.7 Scope and Limitation of the Study 6
1.8 Definition of Terms 7
CHAPTER 2 8
REVIEW OF RELATED LITERATURE 8
2.1 Conceptual Framework 8
2.1.1 Concept of Organizational Structure 8
2.1.2 Dimensions of Organizational Structure 12
2.1.3 Concept of Employee Performance 16
2.1.4 Measures of Employee Performance 19
2.1.5 Organizational Structure and Employee Performance 20
2.2 Theoretical Framework 23
2.2.1 Contingent Theory (Burns and Stalker, 1961) 23
2.2.2 Classical Organization Theory 23
2.3 Empirical Framework 23
CHAPTER 3 26
RESEARCH METHODOLOGY 26
3.1 Research Design 26
3.2 Population of the Study 27
3.3 Sample Size Determination 27
3.4 Sampling Techniques 28
3.5 Source and Method of Data Collection 29
3.6 Methods of Data Collection 29
3.7 Questionnaire Design 30
3.6 Data Analytical Techniques 31
3.7 Reliability and Validity 32
CHAPTER 4 33
DATA PRESENTATION AND ANALYSIS 33
4.1 Data Collection and Presentation 33
4.2 Data Analysis 34
CHAPTER 5 43
SUMMARY, CONCLUSION AND RECOMMENDATIONS 43
5.1 Summary 43
5.2 Conclusion 43
5.3 Recommendations 43
References 45
Appendix I 50
Appendix II 51
List of Tables
Table 4.1: Questionnaire Administration and Retrieval 33
Table 4.2: showing the age of respondents 34
Table 4.3: Showing the Gender/Sex of Respondents 34
Table 4.5: Showing the Marital Status of Respondents 35
List of Figures
Fig. 2.1: A Conceptual Framework on Organizational Structure and Employee Performance 8
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Employee job performance is derived from the word job performance that means real work produced by employee within a specific time period. Performance is a comparison between the work of the real compared to the standard set by the company. Performance is the quantity and quality of produced or services rendered by a person in doing the job. Performance is the work of behavior. Performance is the relationship between work and behavior. Organizational structure is one construct that can trigger employee performance 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.
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). High performance organization is called organic organization that is designed to bring out the best in people and create an exceptional capacity to deliver high results (Dalton, 2000). Organic organization refers to a dynamic, loosely controlled, organization capable of modulating size and activities based on changing external and internal demands (Ledbetter, 2003). 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.
In every productive situation, organizational structures have to be designed for the sole purpose of achieving group goal. Indeed in recent time some firms fails due to poor designing of their organization structure. Interestingly a well design organization structure is a framework of formal relation that has been establish through the process of organizing.
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.
Tamunebi (1996) sees organization structure as a framework of role responsibilities that is created for co-ordination of the activities of people and units that work towards the achievement of responsibility is accomplish. The structure of organizational structure eliminates the chaos. Frustration, function and inability to pull in the same direction that would have arisen due to lack of an organogram.
The organizational structure affects organization efficiency in terms of productivity and efficiency delivery which help to drive performance improvement in workers’ productivity. The organizational structure has proactively designs and develops and develops strategies on different programmes for all levels and each as monitors compensation benefits, leaning, recruitment or recruiting talent management correspondents with a centre of expertise, several element of this model may be organized as a shared service and self-service component or the entire model may be efficiently working closely with clients to help define the optimal organization strategies and the organizational structure that will lower transactional cost while providing more efficient and effective productivity in terms of increase in skill both in production and services.
In the largest renewal of organizational structure contact will provide firm with higher level of work force management and performance services as well as the cost saving. From the foregoing therefore, the study seeks to examine the relationship between organizational structure and employee performance of multinational firms in Rivers State.
1.2 Statement of Problems
The multinational firms are faced with mixed performance. Evidences from the subsector confirm that quite a number of multinational firms are 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 follow strategies adopted by their 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.
The essence of this study is to determine whether adopting appropriate structure is one of the critical success factors that supports those firms that are performing well in the sector and the extent to which appropriate structure has help the performance of its employee. However, studies have established that efficient and effective performance depend on the designing and adoption of a fitting structure by the organization, in other words, no effective and efficient organization if the structure of the organization does not support the people who work within the system that provide the key element to determine its success. Therefore this study is determined to examine the relationship between organizational structure and employee performance of multinational firms in Rivers State.
1.3 Objectives of Study
The main objective of the study is to examine the relationship between organizational structures on employee performance in Multinational firms in Rivers State. The specific objectives are as follows:
i. To examine the relationship between complexity and employee performance of multinational firms in Rivers State.
ii. To examine the relationship between formalization and employee performance of multinational firms in Rivers State.
iii. To examine the relationship between centralization and employee performance of multinational firms in 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 complexity and employee performance associate in multinational firms in Rivers State?
ii. To what extent does formalization influence and employee performance associate in multinational firms in Rivers State?
iii. To what extent does centralization and employee performance associate in multinational firms in Rivers State?
1.5 Research Hypotheses
The following research hypotheses were formulated to guide the study;
HO1: There is no significant relationship between complexity and employee performance of multinational firms in Rivers State.
HO2: There is no significant relationship between formalization and employee performance of multinational firms in Rivers State.
HO3: There is no significant relationship between office centralization and employee performance of multinational firms in Rivers State.
1.6 Significance of the Study
Considering the function of organization especially that in multinational firms which requires the relevance of structure in the provision of conductive environment in which organization cannot be over emphasized. This research project on completion will highlight the important 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 existing knowledge in management science, especially in the realizing of organizing and how it is influence organization efficiency and productivity.
1.7 Scope and Limitation of the Study
The scope of this study is delimited into the followings:
Content Scope: The specific areas of employee productivity the study investigated include; productivity, efficiency and effectiveness. Whereas, the areas of organizational structure include complexity, formalization and centralization.
Geographical scope: This study covers an examination of strategic contributions of organizational structure and employee performance.
Unit of Analysis: This is a macro study because it is interested in ascertaining the survival of an organization in this direction. Hence, it is a micro level 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
Efficiency: This is the process of doing something well with no cost.
Employee Performance: Employee job performance is derived from the word job performance that means real work produced an employee within a specific time period.
Productivity: This refers to the rate at which a worker, material, machine is put into production input and amount of goods or services.
Structure
This can be defined as a social unit that is constructed or reconstructed to seek specific goods through division of labour and specialization.
This refer to the state of being well organized or planned with all part linked together.
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