THE IMPORTANCE OF ORGANIZATIONAL STRUCTURE IN EFFECTIVE MANAGEMENT A CASE STUDY OF GENERAL COTTON MILL ONITSHA
TABLE OF CONTENTS
Table of contents vi
The aim of this work is to examine the importance of organizational structure in effective management of general cotton mill Onitsha on issue affecting the management and employees. To uncover the trend of events in the scene, a review of related literature was carried out. As a method of gathering data a structured and closed-ended questionnaire was designed, validated, reproduced and administered on a sample of 50 out of which 40 were retrieved while 12 were lost due to logistic problems. Data based on these were presented and analyzed. It was discovered among other things that, communication, workflows, authority and responsibility are all valid relationships that exist between different dimensions of organizational structure that can affect managerial efficiency. It was concluded that the manner in which an organization is structured is evident in the effectiveness of the management of such organization and also there only a low degree of difference existing between the structural designs of the department within the organization. The following recommendation are made by the researcher based on the organizations generally and general cotton Mill Onitsha must review there organizational structure with the intention of adopting or creating one that will be completely free from communication hitches and hiccups so that cohesiveness will rule in such organizations and better understanding of tasks, expectations etc. can be upheld at all time.
1.1 BACKGROUND OF THE STUDY
Every organization have objectives which has always been to achieve a goal. These objectives are identified through planning. This is simply because through planning, management of organization establish means of achieving objectives invariably, establishing a means for achieving these objectives becomes the prior occupation for management. This brings theme face to face with a major management function which is organization. The organization process is mainly aimed to achieve co-ordination through the design of structure of task, authority and relationships. Meanwhile, the level of objective attainment generally determines the extent of management effectiveness. On the other hand, structure being a direct result of management function of organizing is the framework through which an organization accomplished the task and responsibilities needed to attain its objectives. This may be why Donnelly et al (2004) stated that “structure is a means for achieving the goal established in planning. Coming to task that structure in the present day organization presents, the need for people to organize their efforts in order to attain certain objectives becomes more and more imperative. Hence organization structure defined the format for allocation of work roles to identify the members of the organization. It establishes the line of authority for integration and co-ordination activities. According to Gabraith and Nathanson, (2009) organizational structure means “the organization of work into roles such as production, financial, marketing and so on. The combining of roles into departments or divisions all in an effort to achieve set objectives. We can therefore describe the functional structure in terms of dividing tasks, jobs and delegating authorities thus, this provides some aspects of major challenges faced by management, management in expected to make the appropriate analysis that will help in designing an effective organizational structure.
A sound organizational structure will aid directing, co-ordinating and control, in the overall outset of an organization and its members. Therefore it becomes a network of interaction and relationships between positions, therefore functions and occupants and also a means through which management attempt to achieve organizational goals. The foregoing emphasizes the fact that structure is the result from organizational design. It could therefore be regarded as a guide without which a managerial team will not function effectively. Thus, it is far from surprise that it has been the subject of intensive study which has been adopted in trying to design effective organization structure. Firstly it was the classical theorists who passed the ideal of “one best way for structuring effective organization. Unfortunately the answer provided by the decades of systematic research has proved this notion wrong. Organizations face a wide range of internal and external conditions that there cannot be a single structure or design that will prove successful in all. Thompson (2007), has confirmed that idea by stating that, the best organizational structure is one that can adjust to tackle any situation at hand. At this basic fact has become increasingly apparent, a new prospective on organizational design known as the contingency approach has taken form. Supports of this approach reason that there is, in fact not best single structure. People and environment in the above factor function with the key dimensions of organization structure, which include departmentation, chain of commands, span of control, centralization, conversion staff complexity. The above facts, present a lot of challenges for modern managers. Prescribing a successful organizational structure that agree adjusts to agree with both internal and external environment. Unless, researches are therefore carried out inorder to involve radiated recommendations, they will not be effective in practice.
Brief History of General Cotton Mill Onitsha
The company was incorporated in 1964 as a private company under the companies ordinance (AP 37 to manufacture printed cloths. It came into full operations in 1973 after new equipment were acquired for the spinning/weaving mills to complement the printing process thus becoming a full integrated textile factory. General cotton mill Limited facilitates include 39640 spindles, 1,238 looms and finishing plant for bleaching, drying and printing which include 2 rotary printing machines. The company since its inception maintains two service agreement. It is technically supported by Texas cotton mill limited of Hong Kong and by UAC of Nigeria Plc, for it commercial services. They supply prudent management resources sustain over the years. The authorized share capital of the company is N400,000 share of 50 kobo each i.e. N200,000 only N189,583,330 share are issued and fully paid.
1.2 STATEMENT OF THE PROBLEM
Overtime, organizational structure has been proven to be of basic importance to every organizations existence. Authorities and responsibilities will be clearly defined, every task assigned to a person and the person held responsible for how well or badly he or she performs the job. Duties and tasks are shared into departments and units with a manager overseeing the affairs of such departments and units. These departments must all work harmoniously towards the achievement of set objectives (Udoye, 2011). The problems that are encountered therefore, are problems of duplication of tasks and repetition of process. The importance of organizational structure in management effectiveness cannot be utilized if the best organizational structure is not adopted. Most cases haphazard and unobjective structures are due to management neglect of the importance of organizational structure. The study therefore will seek to highlight deeply, the importance of organizational structure in order to draw the attention of management to it. The study will also identify different patterns of organizational structure and their characteristics so that management can be well informed towards choosing the bets structure that will suit the operations of general cotton mill, Onitsha.
1.3 PURPOSE OF THE STUDY
This study is to examine the relationship among some element of organizational structure and managerial effectiveness in Nigeria business organization. Therefore it will seek to:
- Identify factors in the organizational structure that could affect managerial effectiveness.
- To determine whether there is problem in the structural design of any department within the organization.
- To find out if the level of education of subordinate influence the way a manager structures his department.
- To identify the links between the above variable and the managers degree of effectiveness in meeting up to the objectives he is expected to achieve.
- Determine whether those variables have the same or different effects on managerial effectiveness in the different departments.
1.4 SIGNIFICANCE OF THE STUDY
Proper organizational structure in the organization will reduce role conflicts and avoid stress to manager, it will also specify span of control. The study will help many corporate organizations that will go through the work in adopting a sound or proper organizational structure, which will enable them achieve their set objectives. It will also specify the roles the work flows and flow of authority or responsibility from top to the bottom of the organization, which reduces stress and job dissatisfaction among some employee. It will encourage, easy job analysis in the organization. This research will also help top management during job evaluation and performance appraisal.
1.5 RESEARCH QUESTIONS
In order to further guide this research work, the following questions have been advanced.
- What relationship exists between different dimensions of organizational structure that can affect managerial efficiency?
- What is the degree of difference existing between the structural designs of the department within the organization?
- Does the level of education of the subordinates affects or influence the way a manager structure his department?
- What are the lines between the above variables and managerial degree of effectiveness in meeting up to the objectives he is to achieve?
- Does the same variable have some or different effects on managerial effectiveness of other organizations?
1.6 SCOPE/DELIMITATION OF THE STUDY
Due to the nature of this research, it will not be feasible to study the influence of all the structural variable that could affect managerial effectiveness hence, only some of them will be covered in this study. The scope of this study will be limited to General Cotton Mill Onitsha, due to time and financial constraints.
- DEFINITION OF TERMS
Organizational Structure: Refers to the setting through which an organization accomplished the task and responsibility needed to attain its objectives and goal.
Organization design: Concerned with identifying basic principles that determine the organizational structure of any business organization in relations to the demand of technology and environmental forces.
Technology: This is the conversion process used by an organization to transform inputs into outputs.
Environment: Refers to those elements, institution, organization etc whose activities affects the performance of an organization and are not subject to the organizations control. Hence, the organization must adopt or adjust to their demand or only try to have some level of influence on them.
Centralization: Refers to the degree authority and responsibility are concentrated to key persons in the organization.
Co-ordination: The process of creating an effective links between the components parts of organizational structure which results from departmentalization.
Authority: Is the right to act, it is power vested in a particular person or position and accepted as appropriate and recognized as legitimate not only by the power wielder but also by those over whom he holds such power.
Strategy: The basic goals and objectives and means of achieving them.
1.1 Background of the study 1
1.2 Statement of the problem 6
1.3 Purpose of the study 8
1.4 Significance of the study 9
1.5 Research questions 10
1.6 Scope/delimitation of the study 11
1.7 Definition of terms 12
RELATED LITERATURE REVIEW
2.1 The meaning of organizational structure 14
2.2 Structure 15
2.3 The traditional early perspective 17
2.3.1 Environment and structure 25
2.3.2 Division of labour 27
2.4 Departmentation 31
2.2.1 Types of structure 34
2.5 Authority and delegation 36
3.1 Design of the study 38
3.2 Area of the study 38
3.3 Population of the study 39
3.4 Sample of the study 39
3.5 Instrument for data collection 40
3.6 Validation of the Instrument 41
3.7 Distribution and retrieval of instrument 42
3.8 Method of data analysis 42
DATA PRESENTATION AND ANALYSIS 43
4.1 List of findings 48
4.2 Discussion of findings 49
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings 51
5.2 Conclusion 52
5.3 Recommendations 53
5.4 Limitations of the study 55
5.5 Suggestions for further research 56