THE IMPORTANCE OF ORGANIZATION STRUCTURE IN EFFECTIVE MANAGEMENT (A CASE STUDY OF GTB BANK, DUGBE, IBADAN )
The topic of this study is Importance of Organizational Structure in Effective Management (A study of GTB BANK, Dugbe, Ibadan). The researcher adopted the descriptive survey design. The researcher used both the primary, and secondary sources of Data in the course of the study. The primary data was sourced through the instrument of questionnaire while secondary data was sourced through texts books, magazines, journals and internet. The Population of the study comprise of the staff at GTB BANK, Dugbe, Ibadan. The findings revealed among others that organizational structure has a great impact in the effective management of organizations. The researcher recommended among others that organizations should endeavour to have well structured organization, in order to achieve the set up objectives.
1.1 Background 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 permits 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.
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
An organizational structure is primarily set up for the purpose of promoting co-operation and facilitating the exercise of executive leadership. It permits the retention of co-ordinated thought and action every though organizational relationship become more complex with growth. (2001.75) said that organizational structure is never the whole story. It is just a way of dividing responsibility among executives.
Organizational structure is meaningless unless supported by appropriate systems and a consistent culture. However, organizational structure is still surprising information about strategic priorities and the work going on, so it?s as good as place to start as anytime. The type of organizational structure depends on the nature of the particular organization. The form which the organizational structure takes may be represented periodically by an organizational chart.
1.3 Objective of the Study
This study is to examine the relationship among some elements of organization structure in effective management. The objectives of the study are as follows:
(1) Identity factors in the organization 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 Research Question
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 a problem in the structural design of the departments within the organization?
(3) To what extent do the level of education of the subordinates influence the way a manager structures his departments.
What is the link between the above variable and the manager?s degree of effectiveness in meeting up to the objectives he is expected to achieve?
1.5 Significance of the Study
Proper organization 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.
1.6 Limitation of the Study
Some difficulties were noticed in getting information listed in the project.
1. 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.
2. 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.
3. 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.
1.7 Scope of the Study
Due to the nature of this research, it will not be feasible to study the effect of organization.
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