Organizational Structure And Employees’ Performance

1.0 INTRODUCTION
1.1 Background Information to the Study
In this present business world, there is hardly any organization that does not have profit and growth as its main objectives. The growth of a firm is principally measured on the percentage of market share captured and client served. By deciding how to approach the markets and customers, employees are placed into different strategic positions to execute the strategies and pursue objectives established by the organization (Nwosu, 2020). The placement of organizational members into strategic positions of responsibility with authority with a view to achieving organizational objectives is structuring. Hence organizational structure is sine qua non to continuous existence of every organization. To attain objectives, organizations must channel employee endeavors in unified direction and established means of allocating resources/responsibilities and control under arrangements referred to as structure. Thus, organizational structure is how job task is formally divided, grouped and coordinated (Nosike, Okoye & Afodigbueokwu, 2021).

Organizational structure according to Robins, Judge, and Vohra (2021) explains how work tasks are formally separated, categorized, and coordinated. As a result, managers must pursue corporate growth through effective organizational structure, formalization, and chain of command. Organizational structure describes the formal arrangement of jobs and tasks in organizations. It describes the allocation of authority and responsibility, and how rules and regulation are executed by workers in firms (Lankas, Naikuni & Kulet, 2022). Nelson and Quick (2021) posit that the structure gives an organization the form to fulfill its functions in its operating environment.

The necessity for effective organizational structures that would support smooth manufacturing processes and hence promote corporate growth has arisen as a result of the competitive business climate and increased demand for goods and services from organizations (Bekanwah, Miidom & Ukoha, 2020). Therefore, managers who set out to design an organization structure face difficult decisions, as they must choose among a myriad of alternative frameworks of jobs and departments (Ugwu, Nnadi & Udeze, 2019). The first decision focuses on individual jobs, the second decisions focus on departments or groups of jobs, while the next decision considers the issue of delegation of authority throughout the structure (Aghion, 2020). No matter the choice the manager or a person designing the structure may take, its essence is to create an internal mechanism that reflects authority and responsibility distribution within the organization and equally show the communication channel and task coordination framework in the organization.

According to Rezaeian (2022) organizational structure is the system of relations, formed unofficially, approved officially and dominating the activities of people who are interdependent for achieving their common goals. In other word, it is the way or method, through which the organizational activities are divided, organized and coordinated. Organizations create the structures to coordinate and control the activities of the members. Organizational structure is the framework of relationships, dominating the jobs, systems, operational processes, people and groups that are trying to achieve their goal (Jamshidi, 2023). Through organizational structure, the operations and activities inside the organization are coordinated and the responsibilities and authorities are determined, the structure is the manifestation of systematic thinking (Forouhi, 2020).

Ugwu et al. (2019) posit that organizational structure is used by various firms as a control mechanism to affect employee work outcomes, to ensure that the required tasks are performed effectively and efficiently, and to assist the attainment of organizational goals and objectives. Organizational structure defines the scope of behaviour within an organization, its lines of authority, accountability and to some extent, the organization’s relationship with its external environment. It shows the pattern of relationship with jobs within an organization (Archibong, 2019). Armour (2019) added that organizational structure determines the pattern of communication as well as the formal lines of interaction between individuals within organizations.

A good structure nevertheless does not by itself produce expected performance. Hence, a structure of an organization affects not only employee performance but the overall organizational performance and efficiency of organization. It also determines the rate at which the organization responds to environmental changes and therefore must be aligned with the goals and strategies of the organization. Poor organization structure aids poor performance irrespective of the ability of the manager (Bassey & Umoh, 2020). Thus, the organizational structure is a powerful tool for realizing and achieving organizational objectives.

Similarly, poor organization structure restricts individual growth, self-fulfillment and psychological health of the workforce resulting in failure, frustrations and conflict which hinders organizational growth and development (Burton & Obel, 2019).  This implies that organizational structure affects employee job satisfaction which ultimately impacts on performance. Therefore, the extent to which an organizational structure reduces ambiguity for an employee and clarifies problems such as what the employee is supposed to do, how the employee is supposed to do it, who the employee reports to, who the employee should meet in the event of problems; in all affects their attitudes to work and equally motivates employees to higher performance. Organizational structure is therefore a critical component that drives organizational success.