ORGANIZATIONAL STRUCTURE AS A TOOL FOR EFFECTIVE MANAGEMENT (A STUDY OF NIGERIAN BREWERY PLC)
ABSTRACT
This research examines Organizational Structure as a Tool for Effective Management with special reference to Nigerian Brewery Plc. The research adopted a survey research design. A well structured questionnaire was designed and administered to respondents. A sample size of One Hundred (100) was drawn from the population of study. The sampling was made based on a simple random sampling technique.
The data gathered were presented in tables and analysed with simple percentages. The hypothesis formulated was analysed with the use of Chi-Square technique. It was concluded that - there is significant relationship between organization structure and effective management. Recommendations were proffered that allowing the organizational structure of the company’s knowledge and information flow in all directions increases performance of the organization. Also, organization structure should be properly and carefully designed to meet with the needs of the organization, employees and its environment.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 General Description of the Area Of Study
1.2 Statement of the Problem
1.3 Purpose of the Study
1.4 Relevant Research Questions
1.5 Research Hypothesis
1.6 Scope and Limitation of the Study
1.7 Significance of the Research Study
1.8 Historical Background of the Study
1.9 Definition of Terms
References
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction
2.2 Conceptual Framework
2.3 Current Related Literature on Theories Postulated
2.4 Related Literature Practical in the Nigerian Environment
2.5 Summary of the Chapter
References
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Re-Statement of Research Questions and Hypotheses
3.3 Research Design
3.4 Data Collection Methods
3.5 Characteristics of the Study Population
3.6 Sampling Techniques/Methods and Sample Size
3.7 Description Data Collection Instrument
3.8 Administration of the Data Collection Instruments
3.9 Validity and Reliability of the Instrument Used
3.10 Method of Data Analysis
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
4.1 Introduction
4.2 Respondents’ Characteristics and Classification
4.3. Presentation of Analysis of Data According to Research Question
4.4 Presentation and Analysis of Data According to Research Hypotheses
4.5 Discussion of Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of the Findings
5.2 Conclusion
5.3 Recommendations
5.4 Suggestions for Further Studies.
Bibliography
Appendix: Questionnaire
CHAPTER ONE
INTRODUCTION
1.1 GENERAL DESCRIPTION OF THE AREA OF STUDY
The purpose of structure is the division of work among members of the organization, and the Co-ordination of their activities so they are directed towards the goals and objectives of the organization.
An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to some one common aim. Organizations are a number of clustered entities the structure of an organization is usually set up in one of a variety of style dependent on their objectives and ambiance the structure of an organization will determine the modes in which it shall operate and will perform.
Organization structure allows the expressed allocation of responsibilities for different entities ordinary description of such entities is as branch, site, department, workgroup, and single people. An organizations structure is the set of formal, the planned relationships between the physical factors and personal required for the performance at these function. In the words of mullins (2007:564). Organization structure is the pattern of relationship among positions in the organization and among members of the organization.
Organizational structures make possible the application of the process of management and creates a frame work of order and command through which the activities of the organization be planned, organized, directed and controlled. He went further to say that organizational structure define tasks and responsibilities, work roles relationships and channels communication.
Organizational structure is primarily set up for the purpose of promoting co-operation and facilitating the exercise of executive leadership. It permit the relation of co-coordinated thought and action even though organizational relationship become more complete with growth. Birkinshaw (2001:75) said that organizational structure is never the whole story, it is just a way of dividing responsibilities among executive. It is meaningless unless supported appropriate systems and a consistent culture.
However organization structure is still surprisingly informative about strategic priorities and the work going on, so it is as good a place to start as any” the type of organization structure depend on the nature of that particular organization. The form which the organizations structure take may be are presented pictorially by an organization chart. The chart is useful since it aids in locating properly either positions or functions and it shows the lines of responsibility authority and accountability.
Organizational structure shall be adaptive to process requirement aiming to optimize the ratio at effort and input to output. In effective organization structure shall facility working relationship between various entities in the organizational units. Organizations shall support commands for coping with a mix of orders and a change of conditions while performing works.
Organization structure is clearly important for any organization there are likely to be fewer problem of structure the distribution of task, the definition of authority and responsibility and the relationship between members of the organization can be stabilized on a more personal and informal basis with increasing size, however, there is greater need for a carefully designed and purposeful form organization there is need for a formal organizational structure. There is also need for a continual receive of structure to ensure that it is the most appropriate form for the particular organization, and in keeping with the growth and development there is likely to be of particular importance for the way large organizations. In the words Drucker (1999:11) it is the correct design of structure that is of most significance in determining organizational performance. He further explained that good organization structure does not by itself produce good performance. But a poor organization structure makes good performance impossible, no matter how good the individual managers may be. Coming to the task that structure in the present day organization presents complex relationship, there is the need for people to organize their efforts. Hence organization structure defines the format of allocation of work roles to identify the members of the organization. It establishes the line of authority for integrating and co-coordinating activities.
We can therefore describe functional structure in terms of dividing tasks, jobs and delegating authority thus this provides some aspect of major challenges faced by management. Management is expected to make the appropriate analysis that will help in the designing of an effective organizational structure for any organization. A sound organizational structure activities are directed towards co-ordinating and controlling the overall outset of an organization and its members. Therefore it becomes a sanctioned network of interaction and relationships between positions, functions and occupants and also a means through which management attempt to achieve organizational goals. This emphasizes the fact the structure is the result from organizational design. Thus, it is far from surprise that it has been the subject of intensive study. All organizations have some form of more or less formalized structure which has been defined by Child (1997:284) as comprising all the tangible and regularly occurring features which help to shape their member’s behaviour”. Structures incorporate a network of roles and relationships that collective effort is explicitly organized to achieve specified ends. The structure of an organization can be regarded as a framework for getting things done. It consists of units, function, division, department and formally constituted work teams unto which activities related to particular processes, projects, products markets, customer, geographical areas or professional disciplines are grouped together. The structure indicates who is accountable for directing co-ordinating and carrying out these activities and defines management hierarchies. The chain of command – thus spelling out, broadly, who is responsible to whom for what and each level in the organization. The classical theorist passed the idea of one best way of structuring an organization effectively. Unfortunately the answer provided by the decades of systematic research has proved that this notion is impossible because organizations form wide range of internal and external conditions that there cannot be a single structure or design that will prove successful for all. This idea has been confirmed by the modern theorists stating that the best organizational structure is the one that works for the firm’s situation that moment. As this basic fact have become increasingly apparent, a new perspective on organizational design known as the contingency approach has taken form. People and environment in the above factor function with the key dimensions of organization structure which includes department, chain of command, span of control and centralization. The above facts present a lot of challenges for modern managers. For the purpose of this project research work, structural designment should plan the organization structure to suit with the organization’s goals in both implicit and explicit manner, and to understand the foreign factors of nature, models, dimensional level, determinant variables and the classification of structure which will bring efficiency and effectiveness in all levels.
Firms wishing to slow their entire organizational set up usually do so by preparing a company manual containing policy and objective chart for major and minor organizational units. Job descriptions and specifications and standard procedures.
Their portion of the structure presented in the chart shows two types of dimensions. The first is the Verticut dimension which is cut into a number of levels of authority known as service levels. The second is the horizontal dimension which is cut into functions or groups of functions. The structure of an organization affects not only productivity and economic efficiency but also the morale and job satisfaction of the workforce. Getting the structure right is the first step in organizational days.
Structure should be designed, therefore, so as to encourage the willing participation of members of the organization and effective organizational performance.
1.2 STATEMENT OF THE PROBLEM
No one thinks about an organization's structure until something goes wrong and profits plummet or customers complain. That's when reporting relationships, operational metrics and business culture come under scrutiny. Proactive business leaders take the time to analyze the organizational structure from the start and make sure it facilitates efficient decision making.
Departmental conflict occurs in many companies in Nigeria because there is no proper structure in place. Company policies and procedures are not enforced, causing employee dissension and confusion where there is no organization structure. Approvals take longer because no one knows who is in charge when multiple departments interact.
Lack of structure or an inflexible structure can impede the work force from achieving desired results. Additionally, poor communication among department leaders could filter down into the rest of the organization.
This research work tends to investigate the aforementioned problems and provide solutions and the end of this work.
1.3 PURPOSE OF THE STUDY
This study is to examine the relationship among some elements of organizational structure and management effectiveness in Nigerian business organization. Therefore it will like to
(1) Identity factors in the organizational structure that could affect managerial effectiveness.
(2) To determine whether there is a problem in the structural design of the departments within the organization.
(3) To find out if the level of education of subordinates influence the way a major structure is department.
(4) To identity the links between the above variable and the manager’s degree of effectiveness in meeting up to the objectives he is expected to achieve.
(5) Determine whether these variables have the same or different affects or managerial effectiveness in the different department.
1.4 RELEVANT RESEARCH QUESTIONS
On every research project there should be questions which will enable the project to be realistic. The questions are as follows:
(1) What are the factors in the organizational structure that could affect managerial effectiveness.
(2) is there significant relationship between organization structure and effective management
(3) Is there a problem in the structural design of the departments within the organization.
(4) To what extent do the level of education of the subordinates influence the way a manager structures his departments.
(5) What is the link between the above variable and the managers degree of effectiveness in meeting up to the objectives he is expected to achieve.
1.5 RESEARCH HYPOTHESIS
This hypothesis is formulated tentatively to be tested during the course of this research
Ho: There is no significant relationship between organization structure and effective management
H1: There is significant relationship between organization structure and effective management
1.6 SCOPE AND LIMITATION OF THE STUDY
This research work examine the effect of organisation structure on effective management with reference to Nigeria Breweries Plc. The scope of the research only cover the Nigerian Breweries Office in Lagos.
Some difficulties were noticed in getting information listed in the project.
(a) Financial Constraints
The cost involved in research project is very high considering the state of the economy. The little amount of pocket money to me by my parents is not sufficient enough to carry out a research project extensively.
(b) Time Constraints
The most important using to note is the time limitation combining lectures, assignment and also coupled with term paper makes getting materials for the research project difficult.
(c) Unavailability of Textbooks and Journals
The information gathered in writing research project must come from several textbooks and journal, but most of these textbooks were hard to find and the ones found were outdated editions.
(d) Secrecy of Information
Most of the information used in this research work were gotten from the case study. Due to principles of the organization, some information where utilized. Some were disclosed after much persistence.
(e) Lack pf research skill.
Being the first time I’m writing a research project, I lack the skill required to go about a research project.
(f) Lack of data storage and retrieval budgets.
Getting access to computers connected to the internal is a big problem for me considering the type of school environment. Most data that should be gotten from the computer are not there because of the lack of it.
1.7 SIGNIFICANCE OF THE RESEARCH STUDY
Proper organizational structure in the organization will reduce role conflicts and avoid stress to managers, it will also specify span of control. It will encourage job specialization in the organization and easy job analysis the research will also help management during job evaluation and performance appraisal. The study will help many corporate organizations and government institutions to know what type of structure will suit then end help them to manage the organization effectiveness.
1.8 HISTORICAL BACKGROUND OF THE STUDY
Nigerian Breweries Plc started operation in Nigeria in 1953 but the company was incorporation as a private limited liability company on 27 November 1951, to establish and operate factories for the bottling of beer in Nigeria involving the famous star.
The company became a public company in 1972 with its shares listed on the Nigerian stock exchange.
At the incorporation of the company on 22 November 1951, 14 started operations first in Lagos State and Ibadan at different dates, but today, the company has its branch network in fourteen (14) major cities in the country. In that light Nigerian Breweries Plc 9th Mile Branch, Enugu was established in 1975 to take care of business in Eastern region.
At 31 December, 2004, the company had 7,695 employee nationwide comprising 570 in management and 7,125 in non-management position, 13 of the staff were expatriates.
1.9 DEFINITAION OF TERMS
Organization Structure: The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization.
Boundaryless organization: An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams.
Bureaucracy: An organizational design with highly routine operating tasks achieved through specialization; formalized rules and regulations; tasks that are grouped into functional departments; centralized authority; narrow spans of control; and decision making that follows the chain of command
Centralization: The degree to which decision making is concentrated at a single point in the organization
Decentralization: The degree to which decision making is distributed to lower-level employees.
Delegation: Assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions
Departmentalization: The basis on which jobs are grouped together
Environment: Those institutions or forces outside the organization that potentially affect the organization’s performance.
Formalization: The degree to which jobs within the organization are standardized
.