Impact Of Organizational Structure On Management Effectiveness
(A Case Study Of Entraco Enugu)
The organizational structure of a company profoundly influences the efficacy of its management practices. Essentially, organizational structure refers to the framework that delineates the hierarchical arrangement of roles, responsibilities, and communication channels within an entity. A well-crafted organizational structure can enhance management effectiveness by fostering clarity in decision-making, delineating reporting relationships, and optimizing resource allocation. Conversely, an inadequate or rigid structure may impede communication, hinder adaptability to changing circumstances, and create inefficiencies in decision implementation. The impact of organizational structure on management effectiveness extends to influencing the coordination of tasks, distribution of authority, and cultivation of a conducive working environment. Striking the right balance in organizational structure, tailored to the specific needs of the business, is paramount for achieving optimal management outcomes and ensuring sustained operational success.
This research work was conducted to find out the impact of organizational structure on managerial effectiveness of a named organization (ENTRACO).
This research work on the chosen topic was deemed necessary by the researcher in view of the conclusion reach by several schools of though on management that the way an organization is operationally structured could make or many organization in the achievement of its objectives.
The research in the course of the work, administered some structured questionnaire to critical office of the establishment, aimed at eliciting useful information. This was complemented by view of related literature on the subject including study of the organization structure in the establishment.
Arising from the above exercise, the researcher was able to discover among others.
1. There is weak organizational structure in the establishment studied because the organizational structure in place are not well spelt out as many functional frameworks were not represented on the structure.
2. There was also apparent lack of adequate knowledge and understanding by most staff of the establishments on the structural arrangements and this breeds conflicts in communication channels.
3. That the lack understanding of the organizations structure arrangement contributed to lack of policy and organizational manuals.
In the view of the fact that the above lapses were found to be seriously militating the achievement of the organizational goals, it was then recommended, thus;
1. That the organizational structure currently in place in the establishment should be reviewed and redesigned to include all functional frameworks hitherto not represented.
2. Then the above (1) should be backed up by policy and organizational manual.
3. Proper induction conducted for employers of the establishment on the need for adherence to the organizational structure and reportorial relative ties.
Title Page
Approval Page
Dedication
Acknowledgment
Abstract
Table Of Content
Chapter One
1.0 Introduction
1.1 Background Of The Study
1.1 Statement Of The Problems
1.2 Purpose Of The Study
1.3 Scope Of The Study
1.4 Research Hypothesis
1.5 Significance Of The Study
1.6 Limitation Of The Study
1.7 Definition Of Terms
Reference
Chapter Two
2.0 Review Of Related Literature
2.1 Early Works Relating To Organizational Structure And Contemporary Writings On Organizational Structure.
2.2 Formal Organization
2.3 Informal Organization
2.4 The General Principles Of Management
2.5 Review Of Contemporary Writing On Organizational Structure.
2.6 Purpose Of Organizational Structure/Control
2.7 The Impact Of Organization Structure
References
Chapter Three
3.0 Research Design And Methodology
3.1 Research Design
3.2 Area Of The Study
3.3 Population Of The Study
3.4 Sample And Sampling Procedure/Technique
3.5 Instrument For Data Collection
3.6 Validation Of The Instrument
3.7 Reliability Of The Instrument
3.8 Method Of Data Collection
3.9 Method Of Data Analysis
Reference
Chapter Four
4.0 Presentation And Analysis Of Data
– Introduction
4.1 Presentation Analysis Of Data
4.2 Hypothesis Testing
4.3 Summary Of Result
Reference
Chapter Five
5.0 Decision, Recommendation And Conclusion
5.1 Discussion Of Results/Findings
5.2 Conclusion
5.3 Implication Of The Research Findings
5.4 Recommendation
5.5 Suggestions For Further Research
References
Bibliography
Appendices
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Many theories of organization have been propounded by the management scholars right from the classical era of contemporary period. These management gurus had common opinion that all not profit oriented had sets of objective to be achieved. For these objectives to be achieved, issues centered on the effective management of the organization like division of work, hierarchy of authority, Chain of command and Span of control etc, shall be put in place in a determined fashion that will suit the organizations. This is tantamount to structuring of organization. Organizational structure therefore, simply put in the framework on which an organization is built. It is a network of authority and role of relationships.
In a situation where these are obtained, the net result is the harmonization of operational activities, enhancement of friendly atmosphere among workers in the organization and the smooth attainment of the organizational objectives.
For the purpose of clarity and the practicability of this study, several forms of organizational structure like functional structure, line and staff structure can be adopted. Some other types of structure are product based organizational structure, geographical structure and matrices structure.
Unfortunately, despite the obvious advantage or impact inherent in structured business into attained forms, many Nigeria organization do not appreciate the qualities and guideline peculiar to the chosen structures. This main adherence to the tends of the chosen structure account for the numerous cases of discontinuity and failure in business. The appropriateness of the organizational structure also causes lack of co-ordination, low moral, back passing, role clash of responsibilities and weak financial base in most Nigeria business.
The preponderance of organization ineffectiveness and lack of effectiveness of most Nigeria business organizations are traceable to structural adequacies that makes it mandatory that an investigations into these problem should be carried out in other to solve them.
This need makes the research, the impact organizational structure in managerial effectiveness of selected organization in Enugu state more appropriate.
Organizational structure of the Enugu state transport company limited (ENTRACO) Enugu.
The structure of ENTRACO Enugu consists of three major sections namely: the workshop division, commercial division and operating division. The highest in the organizational hierarchy is the controlling ministry (ministry of state transport) being a government establishment; the Enugu state transport company limited (ENTRACO) activities are directly under the monitoring eyes of the ministry of transportation for the government.
Coming directly below the ministry is the boards of directors headed by a chairman. They are the making body of this company also directs the operations of the company in the desired directions and act as a check on the performance of the managing directors. Finally the jurisdiction of the board of directors covers the entire company.
Under the board of directors is the chief executive who is called the general manager. He possesses executive power in the company and sees to the day to day running of the business. He is answered to the board of directors and his span of control extends throughout the entire company.
One can conclude that as state operating agencies of the federal urban mass transit program, Enugu state transport company limited (ENTRACO) Enugu is structurally organized in a manner to provide cheap, reliable and effective services for the Urban and Rural communities.
ORGANIZATIONAL STRUCTURE OF ENTRACO ENUGU.
Enugu state transport company limited (ENTRACO) come into existence on the 1st of October 1991 under the license of Federal Urban Mass transit program (FUMYP) when the nation was in dire need of transportation cost.
ENTRACO is one of the state operating agencies of the federal urban mass transport program that was charged amongst others, to provide cheap, reliable, efficient transport service for the urban commuters.
ENTRACO offers three major types of services as follows:
Inter city services- Enugu to Onitsha Owerri, Port Harcourt and Abuja etc.
Chapter services- They hire vehicle to anybody that wishes to and the fees are according to the distance and days it will take them to came back.
1.2 STATEMENT OF PROBLEMS
In many institutions and organizations, organizational structure has made a very big impact towards uplifting the affairs of the organization sometimes organizational structure posses a positive impact, in that it could also have a negative impact is workers decide to act on their own without the guides of the organizational structure.
The organizing function can be visualized as a system of overall management system.
Any organization that is properly structured finds it very difficult to uplift the affairs and the operation of the organization, there by constituting a negative impact on the organization if workers decided to act on their own without delegation of duty and responsibility.
The problem of not having a very good and reliable structure in an organization will bring the workers to leaving many work undone and legislate to authority and responsibility, since it is the frame work on which an organization is built and also the network of authority and role of relationships. The net result of the organization not harmonized and the operational activities also when a good structure is lacked.
Enhancement of friendly atmosphere among workers in the organization and the smooth attainment of the organizational objectives is hampered.
All these problems mentioned above are controllable. These can only be achieved by setting a good structure in the organization which will cover both the functional structure, line structure, staff structure, product based organizational structure, geographical structure and matrices structure.
The organizing function like organizing function can be visualized as a system of overall management system. The Enugu state transport company (ENTRACO) has its own organizational structure based on this, one may ask whether Enugu state transport company has achieve its organizational structure existing in the organization.
1.3 PURPOSE OF THE STUDY
The purpose of the study is to know how effective the structure that ENTRACO has set is.
To know if the organizational structure is truly needed in an organization. To impact or expose more knowledge of the organizational structure and its purpose and usefulness to an organization.
1.4 SCOPE OF THE STUDY
the research deals primarily with the study of the operation of the organizational structure in the Enugu state transport company limited (ENTRACO) Enugu. It is critical analysis and evaluation of the role of organizational structures of the establishment with he view to determine their influence on the effective and efficient management of the organization.
1.5 RESEARCH QUESTION
It is the objective of this study to know:
i. What type of organizational structure do ENTRACO have?
ii. What is the adequate number of staff to be super vied by one boss?
iii. What is the financial strength of the organization?
iv. how they transfer from one duty post to another in the organization?
v. Whether the organization adequately define their duty schedule?
vi. What are the criteria for rewarding and promoting workers in the organization?
1.6 RESEARCH HYPOTHESIS
In order to accurately verify whether organizational structure has any impact managerial effectiveness of organizations with special reference to Enugu state transport company (ENTRACO), the following hypothesis are formulated:
HYPOTHESIS (Ho)
1. Organizational structure plays no role in effective management of organization, especially in ENTRACO Enugu.
ALTERNATIVE HYPOTHESIS (Hi)
Organizational structure managerial effectiveness of organization, especially ENTRACO.
2. NULL HYPOTHESIS (Ho)
The financial position of the organization is supporting the effective functioning of the organizational structure.
ALTERNATIVE HYPOTHESIS (Hi)
The financial position of the organization is supporting the effective functioning of the organizational structure.
3. NULL HYPOTHESIS (Ho)
There is insubordination in ENTRACO because of the way it is structured.
ALTERNATIVE HYPOTHESIS (Hi)
There is insubordination in ENTRACO because of the way it is structured.
1.7 SIGNIFICANT OF THE STUDY
Having devoted time and effort on the study, the researcher hope to achieve some hand marks at the end of the study. This research is quite significant given the benefits of a good organizational structure. Organizational structure helps to determine how an organization should be run.
This research work will be of great benefit to many and will go a long way in satisfying the need of people like
– The students- After their graduation, and they went for employments, they will be able to know the structure of the organization and where the post given to him/her falls in for him/her to know what is required of him.
– The lecturers- Will gain a lot. If the impact of the organization is favourable on their own side, the implication is a harmonious working environment synonymous with efficient and effectiveness.
– Future researchers- This research will as a guide to them that want to research more on this topic or any topic that is related to it. It will help to reduce the problem of inadequate source of information or material.
– General public- The work will serve as an eye opener, while going for a transaction in an organization to be able to know who and who to approach for the problem that brought him/her to the organization.
1.8 LIMITATIONS OF THE STUDY
The completion of this study has not been easy due to some constraints and limitations encountered by the researcher like
– Lack of adequate financial out lay involved in a research of this nature.
– Again, as pioneer work on this field of study, there is the problems of sourcing of some relevant materials that relate to this topic for an in depth research.
– The researcher also have the problems of time constraints. The researcher in addition to writing this research has other courses and examination to tackle in an attempt to combine them posse a great problems to the researcher.
1.9 DEFINITION OF TERMS
The researcher deemed it necessary to define or explain the following terms used in this piece of work.
a. MANAGEMENT: It is the utilization of both human and materials resources effectively and efficiently in other to achieve the set goals and objectives.
b. ORGANIZATIONAL STRUCTURE: It is a mapped out patterns or a set out relationship between individuals positions and responsibilities and authority in an organization in achieving its objectives.
c. DELEGATION: This is the process by which an individual manager or supervisor transfer part of his authority or power of act to a subordinate to do a particular work but, without relinquishing the ultimate responsibility entrusted to him by his own superior
d. AUTHORITY: This is the legitimate power can be delegated. It is the right to do something.
e. RESPONSIBILITY: This id the obligation to perform certain function on behalf of the organization.
f. SPAN OF CONTROL: This is the principles of an organization which states that there is a to the number of people and functions that one person can supervise effectively.
g. CHAIN OF COMMAND: The relationship between different levels of employees.
Impact Of Organizational Structure On Management Effectiveness:
The organizational structure of a company plays a crucial role in determining its management effectiveness. It essentially defines how tasks are divided, roles are assigned, and communication flows within the organization. Here are some key ways in which organizational structure can impact management effectiveness:
- Communication and Coordination:
- Centralization vs. Decentralization: In a centralized structure, decision-making authority is concentrated at the top, while in a decentralized structure, decision-making is dispersed. The choice between these structures affects how quickly decisions are made and how well information flows through the organization.
- Formal vs. Informal Communication: The structure influences the formality of communication channels. A more hierarchical structure may have formal communication, while a flatter structure may encourage informal communication. Effective communication is crucial for efficient management.
- Responsibility and Accountability:
- Clarity of Roles and Responsibilities: A well-defined organizational structure helps in clarifying roles and responsibilities. This clarity is essential for effective management as it reduces confusion and ensures that tasks are performed by the right individuals or teams.
- Chain of Command: The hierarchical arrangement in the structure establishes a clear chain of command. This helps in determining the reporting relationships and understanding the flow of authority, which is critical for management effectiveness.
- Flexibility and Adaptability:
- Flat vs. Tall Structure: A flat organizational structure has fewer hierarchical levels, promoting quicker decision-making and adaptability. On the other hand, a tall structure has more layers, which may slow down the decision-making process. The choice between these structures impacts how quickly the organization can respond to changes in the external environment.
- Employee Morale and Motivation:
- Span of Control: The span of control refers to the number of subordinates reporting to a single manager. A wider span may result in more autonomy for employees, promoting motivation. However, if the span is too wide, it can lead to managerial overload, affecting effectiveness.
- Hierarchy and Empowerment: The level of empowerment provided to employees within the organizational structure can influence their morale and motivation. A flatter structure with more empowerment can contribute to a more engaged workforce.
- Decision-Making:
- Centralized vs. Decentralized Decision-Making: The organizational structure determines whether decision-making authority is concentrated at the top or distributed across different levels. Centralized decision-making may lead to faster decisions but could result in a lack of innovation. Decentralized decision-making allows for more input but may be slower.
- Efficiency and Productivity:
- Specialization and Functional Structure: The degree of specialization in a functional structure can contribute to efficiency. However, it may also lead to silos, hindering cross-functional collaboration. Balancing specialization and collaboration is crucial for overall productivity.
In summary, the impact of organizational structure on management effectiveness is significant. A well-designed structure aligns with the organization’s goals, enhances communication, defines roles clearly, and promotes efficiency. It is essential for organizations to periodically assess and, if necessary, adjust their structure to adapt to changing internal and external dynamics.