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EFFECTS OF ORGANIZATION STRUCTURE ON EMPLOYEES PERFORMANCE (A STUDY OF FIRST BANK)

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ABSTRACT

This research work focuses on effects of organization structure on employees’ performance (a case study of First Bank Plc.). The objective of this study is to determine whether there is appropriate organisational structure in First Bank Nigeria and the extent it has contributed to their employees’ performances. The investigation was carried out with the use of questionnaire to gather information from the members of First bank plc. A number of 150 (fifty) questionnaires were distributed and analysed. This study used descriptive type of survey design and structured questionnaire was used to generate data. Descriptive statistics, correlation and t-statistics, was adopted for analysis of data and hypotheses testing. The result revealed that there is a significant impact of effective organization structure on workers performance and effective organization structure affects the performance of workers. It is recommended that having an organizational structure in place is very important for any organization; better communication and transparency is recommended.

CHAPTER ONE

INTRODUCTION

1.1 Background of Study

In modern society, most people spend their working lives in an organization of some sort; therefore have first-hand experience of the corporate life. This study considers some of the findings and work that help to provide a better understanding of the nature of organizations which also includes the examination of the structural aspects of an organization and how it impacts on the performance of employees in an organization.

An organization is a collection of interacting and independent individuals who work towards common goals and whose relationship are determined according to a certain structure.

Arnold et al. (1998), this definition provides a useful starting point for an examination of organizations. The organization design is the overall arrangement of the various roles, processes and their relationships in the organization. It is a means to accomplishing the overall goal. The structure is not an end itself.

Performances of employees are based on the influence of some factors (motivations) which are as follows:

• Clarity Of Goals And Duties: Employees of Nigeria LNG Ltd are motivated due to the clarity of goals and objectives of the company in which everybody knows what the term is working towards and what he can contribute If the objective and goals are stated, it will be easy to select an organization most relevant actions for achieving such goals are objectives.

• Individual Consideration: When assigning adequate measures or safeguards for management control, variation in individual ability are considered.

• Flexibility Consideration: The organization structure of the company is flexible which has accommodated changes that may occur during the firm activities.

• Unity in Command: Each employee report and responsible to only superior at any point in time for each or all the functions he performs. No employee is subjected to orders from more than one source.

• Span of Control: The Span of control in the sense that the number of workers supervised by and reporting to an officer at any point in time is reasonable. At the organization, the number of subordinates reporting to an executive is between 4 and 6 while 20 at bottom level.

• Adequate Resources: For a useful organization structures adequate resources must be made available for each person to undertake his assigned ‘task successfully.

• Evaluation Criteria: There are known criteria and standards for measuring and appraising individual and departmental performance.

• Availability of Systems to Manage Staff Training and Performance: This is another factor that motivates staff of Nigeria Liquefied Natural Gas Ltd to perform effectively. For efficiency and increase in performance there must be well-defined processes for defining, creating, capturing and acting on knowledge. Training and development programs have enhanced staff of Nigeria LNG ltd performance. Therefore, employees of Nigeria LNG ltd have been motivated by the system in place for staff training program.

The non-motivation of staff performance could be that if the provision of environment for learning and development is not conducive, it will affect staff performance and which will bring low productivity in the organization. Therefore, environmental condition should be considered.

1.2 Statement of Problem

Various aspect of effective organization structure mentioned above where examined in the works of management scientist theorist Henry Fayol (1980), produced series of publications concerned with the structure of organization, power and authority within them.

The structure of an organization could have adverse influence on the provision of conducive environment for learning and performance of skills. There are various forces that bring about changes in an organization design, such driving forces cause dramatic changes which can influence the effective conduct of business. Though, these designs are used organization-Wide for various teams in an organization.

The problem associated with impact of effective organization structure on, employees’ performance ate significant issues and this has generated opinions. Workers or employees of Nigeria Liquefied Natural Gas Ltd quit their present working place because of lack of proper working environment, fixtures and this have gone a long way to affect the productivity of such employees and invariably affected the turnover of the organization.

The dissatisfaction of these employees on their job have made them go looking for job in some other organization where they think that better provisions are made for these variables lacking in their former workplace(s).

Moreover, because of improper positioning or location of plant/building, the employees work under stress and these have affected their health and productivity adversely. This study is therefore designed to look into the impact of effective organization structure on employees’ performance.

 

 

 

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