Assessment of organizational structure and its impact on performance in case of Dire Dawa

water supply nterprise

A RESEARCH PAPER SUBMITED TO DEPARTMENT OF MANAGEMENT FOR

PARTALFULFILMENT OF THE REQUIREMENT IN BA DEGREE IN MANAGEMENT

BY: Bilise mohamed

ADVISOR: - Ahmed Aliyi (MBA, Lecture)

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

DIRE DAWA UNIVERSITY

JUNE, 2017

Dire Dawa Ethiopia

ACKNOWLEDGMENT

First of all thanks to our almighty Allah, for his indescribable gift and kindness. I
would like to express my greatest and gratitude to my adviso Ahmed MBA) for
continuous Advise and suggestion. Heracademic insight and constructive reflection
have been very helpful .I would like to express our great thank to those individual
who contribute to the completion of this study. As last but not least, I would like to
thank my friends for this supports

Contents
1. INTRODCTION...........................................................................................................................5
1.1BACKGROUND OF THE ORGINAZTION..............................................................................5
1.2 Background of the Study.............................................................................................................6
1.3 statement of the problem.............................................................................................................7
1.4 Research questions......................................................................................................................7
1.5 Objective of the study.................................................................................................................7
1.5.1 General objective.....................................................................................................................7
1.5.2 Specific objectives...................................................................................................................8
1.6 Significance of the study.............................................................................................................8
1.7 Limitations of the study..............................................................................................................8
1.8 Scope of the study.......................................................................................................................8
2. Review of related literature.......................................................................................................9
2.1 Bank ground of TWWCE............................................................................................................9
2.1.1 Meaning of organizational structure........................................................................................9
2.1.2 Concepts of organizational structure......................................................................................10
2.1.3 Essential features of good organizational structure...............................................................11
2.2 basic element of organizational structure..................................................................................12
2.2.1 Chain of command.................................................................................................................12
2.2.2 Departmentalization...............................................................................................................13
2.2.3 Formalization.........................................................................................................................14
2.2.4 Span of control or span of management.................................................................................14
2.2.5 Work specialization................................................................................................................15
2.2 6 centralization/ decentralization..............................................................................................16
2.3 purpose of organizational structure...........................................................................................16
2.3.1 Benefits of organizational structure.......................................................................................17
2.3.2 Objective of organization structure........................................................................................18
2.4 Extremes of organizational structure.....................................................................................18
2.5 factors influencing organizational structure..............................................................................19
2.6 classification model of organizational structure.......................................................................20
2.6.1 Bureaucratic model................................................................................................................20
2.6.2 Scientific management model................................................................................................21
3. METHODS AND PROCEDURES.............................................................................................22
3.1 Research design.........................................................................................................................22
3.2 Description of the study area.....................................................................................................22
3.3 Population sample size and sampling techniques.....................................................................23
3.4 Types of data collection............................................................................................................23
3.5 Procedure...................................................................................................................................23
3.6 Method of Data analysis and Presentation................................................................................23
4. Chapter Four............................................................................................................................24
Data presentation, analysis and interpretation.............................................................................24
4.1 Introduction...........................................................................................................................24
Table 4.1 Respondent’s profile....................................................................................................24
4.2 Formation of organizational structure...................................................................................26
Table 4.2 Conformity of organizational structure.......................................................................27
4.3 Integration of organizational structure..................................................................................29
Table 4.3 integration of organizational structure........................................................................29
4.4 Employees communication in the organizational structure...................................................31
CHAPTER FIVE.........................................................................................................................35
Summary, conclusion and Recommendations.............................................................................35
5.1 The major finding of the study is summarized as follows:-..................................................35
5.2 Conclusions...........................................................................................................................37
5.3 Recommendations.................................................................................................................37
LIST OF TABLE

Table 4.1 respondents profile 25

Table 4.2 formation of organizational structure 27

Table 4.3 integration of organizational structure 30

Table 4.4 employee’scommunication inorganizational structure 32

Abbreviation

DDWSSA.....DIRRE DAWA WATER SAPPLY SANITION ATHOURITY

Abstract

In this research the researcher try to deals with the assessment of organizational structure in the
DDWSSA. theobjective of the study was also to asses organizational structure and its impact
on performance . the company employee participated in decision making destining and
redesigning was low . Whetheritsstructureeffective or not in the organization . there are many
problems that face the organization to success in its performance . among which design
problem, of its project shortage of well educated engineers and project not finished in the
schedule time . thetargetpopulation of the study was the employees of the TWWCE organization
and interview from top management and some employees in the company . as ample size of 48
of 260 employees was taken. The relevant data was taken collected through survey questioner
and interview by simple random sampling techniques to give equal chance of to employees.

Major finding revealed that the problems of employees limited in involvement of decision
making process designing and redesigning of organizational structure which have negative
influence in the performance .

Based on the majority of employees the researcher point out that participation of employees in the
designing and redesigning of organizational structure.

Chapter one
1. INTRODCTION

1.1BACKGROUND OF DDSSA

works construction enterprise is located in micelle town. Principally established to carry

out construction of civil works. The main activity of enterprise includes the construction of
dam’s irrigation, road building etc.
The enterprise has been established in 1994 E.C in order to fulfill the demand of the region in the
construction sectors especially in water and related works its specific object were to provide
adequate water supply irrigation structure road and housing both in terms of quality and quantity.

It is construct big project through the region and to give supply indirectly for the neighboring
region.

VISSION

 A spire to see that the people has a health and free from poverty by 2017 E.C. through
supplying adequate safe and clean water in sustainable and fair distribution

MISSION

Through intensive but sustainable, development and better management water resource
and schemes targeting to meet the demands of clean water for drinking and irrigation with
equity to everyone in the region.


 VALUES
 Water is life
 The custemer is king
 Equitable water distribution
 Honesty to production and cantry

1.2 Background of the Study

A sustainable organizational structure may assist the project management team to achieve high
performance in the project through gain in efficiency and effectiveness. Specific objectives are set
to be achieved at the end of each project. The objective may vary from one to another (Tukel,
1996.)

Organizational structure defines how activity such as collection, coordination and supervision are
directed toward the achievement of organizational aim (internet).
Organizational structure refers to how job task are formally divided and coordinated. It tells how
specialized and non- specialized task are performed. the frame work of the organization the
structure were in the job of each every person defined described and coordinated to achieved the
organization goal (Robbins ,2000). Organizational is a stable frame work that depicts how the
human and non-human elements in it arranged and grouped. It is based on organizational mission,
goal and objectives. The number, diversify and complexity an organization goal should play an
important role in decision about how it should be structured. Non-human element includes
position, job duties, line of authority, formal pattern of activity and relationship that connect the
various consistent part of the structure such as hierarchal level, division department etc. (gales
2003.)Dirre dawa water supply and sanition Athority is one of the leading and responsible for all
water related construction in the region. The water related product is mainly give services for the
community with the future plane of the art construction facility to gather with the technologically
standardized. The fundamental restructure to enterprise management system can be turning point
for the overall success the company. On the other hand the growing demand construction leads
the company develops its efficiency in all aspect. In this regard starting from using the latest
technology machine system to construct will equipped construction many efforts have be done?
Tigray water works construction enterprise provides adequate supply irrigation structure broad
and

Housing both in terms of quality and quantity to local as well as all over the region. In order to
achieve this goal, they incorporate technology to provide solution for their community needs. All
this are must be cosine organizational structure to the enterprise. Hence the researcher will focus
on on the enterprise performance. To conduct this study the researcher will use qualitative,
quantitative descriptive ways of analysis. The main purpose or motive of this study is to conduct
the research, the researcher to develop greater awareness of organizational structure, their impact
organizational effectiveness to offer a possible alternative to Tigray water works construction
enterprise of organizational structure. due to the extent to which the assessment of organizational
structure and factor affecting organizational performance

1.3 statement of the problem

Every organizational can be seen as an enclosed system is people and process that work together
towards achieving some defined goals [senior and swailes,2010,p.4]. However, there are many
comports that are making an organization. Among this copouts senior and swails 2010, p.5 name
of formal sub system such as management, strategy goal structure, operation and technology and
informal subsystem such as leadership police and culture. Organizational structure refers to the
division of labor as well as the pattern of coordination, communication, and work how and formal
power that directs organizational activates, an organizational structure reflects its culture and
power relationships (Stephenand Marry Ann, 2000).

The coordination that exists between the departments directly affects the performance of the
overall activity. In Ethiopia, due to many reasons such as limited skill or poor knowledge about
organizational structure performance and other reasons less attention is given for many aspects of
organizational structure function in many government as well as private organizations.

The dirre dawa watersupply sanition Athorty enterprise confronts problems regarding effectives
which are attributed to the following factors. The first problem is clarity of overall structure of the
organization, second the organization also have multiply departments that performs similar
activity. Third, the communication problem the top management and employees in the
organizations structure.

So, that the focus of the researcher will be aimed to identify the problem of organizational
structure of Dirre dawa water supply and sanition Athority works construction enterprise
concerning organizational structure and also assess the effectiveness and efficiency of the
organization.

1.4 Research questions

In order to conduct this study the following key questions was be raised in the management of
employees of the organization

1. How organizational structure effort is organized in the

2. How the company does structure its departments?
3. What is the impact of the organization structure on its performance?

1.5 Objective of the study

1.5.1 General objective

The general objective of the study is to examine the organizational structure of dire dawa water
sapply and sanition

1.5.2 Specific objectives

 To analyze how the organization structured effort is the organized in the company.
 To analyze how the activities are grouped and integrated in to units.
 To access information flow between employees and management.

1.6 Significance of the study

This study is to investigating the different problems of organizational structure in the study area.

It has serve as bases for other researchers who study on the related topics. The research paper may
contribute to the Dire Dawa water supply works construction enterprise understanding about
organizational structure and its impacts on performance of the company.
 1.7 Limitations of the study
In conducting the study the researcher faced some constraints like shortage of time and shortage
of financial, skill or knowledge and etc.

1.8 Scope of the study

In terms of the study, this research exclusively focuses on management and non- management
staff of the company. The company is located in places at near to sabian which is principally
established. But the researcher was limit the study to dire dawa main main office because short
period of time and like of finance. The conceptual scope of the study is lake of experience,
knowhow about the study of the organization, challenges of respondent. Methodologically
concept of the study the researcher describes the organizational activity includes employees and
management.
CHAPTER TWO

2. Review of related literature

2.1 Bank ground of DDWSSA

2.1.1 Meaning of organizational structure

Organizational structure involves arrangements of actives and assignment of personnel to these
activities in order to achieve the organizational goals. It is away by which various parts of an
organization are tied together in a coordinated manner and it is illustrates the various relationships
among various aspects of organizational operations. (N.KUMAR AND R. MITTAL 2001:94).

Robbins cited in Mishra (2003:361), stated organizational stricter refers to how job risks are
formally divided grouped and coordinated. It tells how specialized and non-specialized tasks are
performed. The frame work of an organizational is the structure, where are performed. The farm
work of an organizational is the structure, where in the job of each and every person is defined,
described and coordinated to achieve the organizational goals.

The control, command division of work and placement of jobs are considered under the
organizational structure.

As per Steven. L (2005:428)organizational is process of combining the work, which individual or

groups have perform with the efficient, necessary for its execution, that duties so performed
provide the best channels for the efficient, systematic, positive and coordinate application of
available effort. A good organizational structure is needed so that:

A. Each individual in the organization is assigned a role, responsibility and necessary

authority. Each person who assigned to an activity much knows his position, his role and
his relationship with others. He is further responsible for efficient execution off his role
and duties and his given the authority to do so.
B. The activity of all individual are coordinated and integrated into a common patter in order
to achieve the organizational objectives. Organization is needed for the purpose of
integration of divers’ activities in a cohesive manner.
C. The optimum use of human skill and efforts is achieved. Half the work is completed when
you know what you have to do and how you have to do it. A good organization does that.
It helps in smooth operations and smooth flow, thus avoiding bottlenecks, idle time and
idle machines. A good organization requires the right person for the right job and this
avoids misapplications of human resource thus resulting in optimal utilization of employee
efforts. This would ensure efficiency in the functioning of the enterprise.
Organizational structure is the form arrangement of jobs within an organization. When
managers develop or change the structure, they are engaged in organizational design, a
process that involves decisions about six key elements work specialization,
 departmentalization, chain of command, span of control centralization and
decentralization and formalization (Robins p, 2006:234).

2.1.2 Concepts of organizational structure

An organizational structure defines how job, tasks are formally divided, grouped and coordinated
(Robbins and Timothy, 2009:565).there are many different opinions and definition on
organizational structure. Structure in one sense is the arrangement of duties use for the work done.
This is the best represented by the organization chart (Jackson and Morgan, 1982).

In other sense, “structure is the architecture of business competence, leadership, talent, functional
relationships and arrangement” identified structure as the basis for organizing to include
hierarchical levels and span of responsibility, roles and position, or mechanisms for integration
and problem solving (Wolf, 2002).

Structure defined as the relatively enduing allocation of work role and administrative mechanisms
that creates a patent of interrelated work activities and allows the organization to conduct,
coordinate, and control its activities (J. child, 1972:21-23).

Lawrence and Lorsch (1967) describe structure as “the technique in which the organization is
differentiated and integrated”. Differentiation is related to the scope in executives act, whereas
integration is described in such a way that every member of the organization including
managements will do their best to achieve organizational goals.

Similarly, an organization is a set of elements in interaction, organized level and decision making
units (Martinelli, 2001:68-73).

Organizational structure is a set of methods through which, the organizational divided in to

district task and then create a harmony between different duties (Mintzberg 1979).

Organizational structure “is the formal system of task and reporting relationship that controls,
coordinates, and motivates employees so that they corporate to achieve an organizational goals”
(under down, 2012).

Organizational structure directs the competence of work, the enthusiasm of employees and
coordination among the top management and subordinates for flow of plans and goals in the
organization to sketch the future plan (Herath, 2007: 895-901).

The most important components of organizational structure include formalization, centralization

and control. Formalization measures the extent of which an organization users rules and
procedures to proscribe behavior. The nature of formalization is the degree to which the workers
one provided with rule and procedures that deprive versus encourage creative, autonomous work
and learning (Nahm, et al; 2003:281-287).

The organizational structure should be designed to ensure that individuals and departments that
need to coordinate their efforts have lines of communication that built in to the structure.
Companies many use various organizational structure for communication purposes. Large
companies have many levels of management. Therefore, the most effective way to communicate
is from top of the organization down (Wolf, 2002).

2.1.3 Essential features of good organizational structure

Besides to the basic elements of the organizational structure there are essential features that must
be recognizes while developing the organizational structure (Amrik and Kumar, 2003:132). The
essential features involves:-

Clear lines of authority: - there must to be clear like of authority mining form the top to the
bottom of the organization. Clarity of line is achieved through delegation of steps from the
highest executive it the lowest worker having the least responsibility and on authority.

Adequate delegation of authority: - every person in the organization must get adequate authority
to meet this obligation according to situation. Authority is vested in the top most executive and is
delegated to his subordinates where ever necessary to meet their obligations. If sufficient
authority is not delegated, the top most executive or the personal vesting authority faces various
problems such as bottleneck in decision-making delay in decision implementation, pressure on
higher level, and less motivation to subordinates. This all problems hamper the growth of the
organization.

Minimum managerial levels: - as for as possible, the managerial levels in an organizational should
kept minimum. The greater the number of levels, the larger chain of command and the longer the
time traveling the message up and down. Though, the number of levels is not certain, yet it serves
as a guideline.

Unity of direction:-every person in the organization should be directed only by one boss as for as
possible relating to a single major function. This is based on the principle of specialization and
unit of direction. Multiplication of direction may create confusion and may lead to conflict.

Application of ultimate responsibility: - the superior at higher level is ultimately responsible for
the acts of his subordinates. The authority floes from superior to subordinate along with the
responsibilities. The higher level manager is, here by, not relieved of his responsibilities the acts
delegate to the subordinates. He is responsible for his own duties of his subordinates.

Span of control: - refers to the number of subordinates, a manager can directly supervise. There is
a limit on this number but this limit cannot applied universally because several factors such as
nature of superior and that of subordinates, nature of work, type of planning, degree of
decentralization, and communication techniques affects span of control.

Simplicity: - the organizational structure should be designed as possible taking in to account the
essential networks but leaving the no room for confusion and ambiguity. Too many levels of
combinational channels, or committees, or multiple of command or too much coordination often
creates more problems rather to solve them.
Flexibility: - organizational structure should be flexible enough so that it can be adjusted
according to changing condition in future. In other words, it should be designed in such a way that
it may fulfill not only the present needs but also along future needs of organization because
changes in the organization is must due to various environmental changes and other compelling
reasons if structure is not flexible, it will be very difficult incorporate to change without much
difficulty.

2.2 basic element of organizational structure

2.2.1 Chain of command

The chain of command is an unbroken line of authority that extends from top of the organization
to the lowest echelon and clarities who reports to whom (Amrik and Kumar, 2003; 135). On the
other hand, Robins p, in (2003:237) says, “You can’t discuss the chain of command without
discussing three other concepts. Authority, responsibility and unit of command”.

Additionally, Amrik and Kumar, (2003:235) authority refers to rights inherent in a managerial
position to give orders and expect the orders to be obeyed. To facilitate coordination, managerial
position is given a place in the chain of command, and each manager is given a degree of
authority in order to meet his /her responsibilities.

The unit of command principle helps preserve the concept of unbroken lines of authority. It states
that person should have one and only one superior to whom he/she is directly responsible. If the
unit of command is broken, a subordinate might have to cope with conflicting demands or
priorities several superiors. Without unit of command conflicting demands and priorities from
multiple bosses can create problems (Robbins p, 2003:237).

2.2.2 Departmentalization
A well structured organizational structure, with its will formed hierarchical levels, creates the
need for a viable departmentalization. It denotes how job activities are clustered
together.Morespecifically, the entirety of the tasks exists in the organizational structure divided
into smaller numbers, which are placed into respects departments with strong emphasis upon an
effective coordination of activities (Kreiter, 2001).

Specialization is grouped together to form a job is to be performed by a department, the next step
of specialization is combine similar activates into a group. Departmentalization is a grouped of
specialization into specific functions, different function are grouped on a similar basis, for
example engineering , accounting, personal, etc. Are the important functions which are grouped
on separate departments known by their respective functions. Departmentalization is use in all
type of organizations according to their objective and functions. For example a university has
different departments such as academic, administrative, teaching, etc. similarity; other
organizations have different type of departments based on their objectives and activities. The
administration (Mishra. M.N 2003:361).
Once you have divided jobs up through work specialization, you need to need these jobs together
so common tasks can be coordinated. The basses by which jobs are grouped together are called
departmentalization. One of the most popular ways to group activities is by function performed. A
manufacturing manager might organize his or her plant by separating engineering, accounting,
manufacturing personnel, and purchasing specialist in to common departments. Of course,
departmentalization by function can be used in all types of organizations. Only the functions
change to reflect the organization’s objectives activities (Sudan. A and Kumar. N, 2003:134).

Functional departmentalization- groups jobs by functions performed. This approach can be used
in all types of organizations, although the function changes to reflect the organizations purpose
and work.

Product departmentalization- groups jobs by product line. In this approach each measure product
area is placed under the authority of a manager who responsible for everything having to do with
that product line.

Geographical departmentalization- groups jobs on the bases of territory or geography such as

southern, mid-western, or northwestern regions or may be U.S, European, Latin American Asian
Pacific Regions.

Process departmentalization- groups jobs on the bases of product or customer on plow. In this
approach work activities follow a natural processing flow of products or even of customers
finally.

Customer departmentalization- groups jobs on the bases of customers who have common need or
problems that can best be meet by having specialist for each (Robbins p.2003:434).

2.2.3 Formalization
Formalization is the degree to which organizations standardize behavior through rules procedures,
formal training and related mechanisms. In other words formalization represents the
establishment of standardization as a coordinating mechanism (Mcshane. L. 2005:434).

Formalization refers to the degree to which jobs within the organization are standardized and the
extent to which employee behavior is guided by rule and procedures. If a job is highly formalized,
then the person doing that job has little discretion as to what is to be done, when it is to be done,
and how he or she doe

2.2.4 Span of control or span of management

s it (Robbins. P, 2003: 240).

Span of control refers to the number of subordinate, a manager can directly supervise. These are
limit on the number of subordinate but this limits and not is applied universally because of several
factors. Such as natural of superior and that of a subordinate, nature of work, type of planning,
degree of centralization, communication technique are affect the span of control (Sudan A, and
Kumar N, 2003;132).

Span of control is important because, to a large degree, it determine the number of level and
managers an organization has. The wider and larger the span, the more efficient the organization
(Robbins and Timothy, 2009:569).

A manager directs managements. In a wider of control, of manger have many subordinates under
him. In a narrow span of control a manger has fewer subordinates under him. Obviously, the
numbers of subordinates that can effectively be manager for supervision and delegation of
authority would be finite and depend up on a number of factors. Some of those factors are
specified by Amrik and Kumar, (2003:135) as follows:

A. Similarity of function: - if the subordinates are involved in the same or similarity of

activities, then it is possible for the manager to supervise more subordinates. Since the
problems that may arise would be similar in nature, this would be easier to handle.
Conversely, if these subordinates are involved in diversified operation, the situation would
be more complex and hence the span of control would be narrow.
B. Complexity of function: - if the operations that the employees are performing are complex
and sophisticated and require constant supervision, then it would be more difficult for the
manger to manger too many employees and hence a narrow, span of control would be
desirable.
C. Geographical closeness of employees;- the closer the subordinates are to each other in a
physical location the easier it will be for the manager to manager more employees.
D. Direction and coordination; - the span of control would also be determined by the degree
of coordination required both within the unit in other departments. If the units need
continuous directions and extra time of managers in coordinating these activities, the
fewer subordinates would be better supervised.
E. Capacity of subordinates; - subordinates, who are trained, professionally develop and
experienced, need little supervision in discharging their duties. In such situations, more
subordinates can be effectively supervised. These subordinates can further be providing
them with “standing plans” which are applicable in repetitive actions and routine recurring
problems, thus requiring less supervisory assistance.
F. The working staff of the manger: - if the manger has a supporting that is equally skilled in
handling situation, then it would be possible to manger a wider span of control because the
responsibilities of supervisors would be shared.

2.2.5 Work specialization

Work specialization is the degree to which tasks in an organizational are divided in two separate
jobs also known as division of labor (Robins, 2003:3240.

Specialization is another component of organization structure. Each and every part of the whole
work is done by specialized people. The total work is broken up into small parts and the
responsibility of performance of each part is assigned to experts. This makes people more
specialized and active there may be subdivision of each part to make it more specialized. Each
step is completed by, skilled labor. The specialized of whole activity is possible by breaking the
total work in to separate parts, sub-divisions and steps. Specialization makes highly sophisticated
tasks can utilized through specialization. The skill of the employees increase by repetition.
Complex and sophisticated operations are performed easily by acquiring skills nd specialization.
It is a well- known fact that the level of specialization increase along with the technological
development. Specialization has increase performance and employee’s satisfaction (Mishra, M.n
2003:361).

Most mangers today see neither work specialization as neither obsolete nor an unending source of
increase productivity. Rather, mangers recognize the economies it provides in certain types of
jobs and the problems it creates where it’s carried too far ( Robbins and Timothy, 2009;566).

For demonstrated that work can be performed more efficiently if employees are allowed to
specialize. Today we use the term work specialization or division of labor to describe the degree
to which tasks in the organization are subdivided into separate jobs. The essence work
specialization is this rather than an entire job being done by one individual, it is broken down into
a number of steps, each step being completed by a separate individual. In essence, individuals
specialize in doing part of an activity rather than the entire activity. In most organization’s some
task require highly developed skilled; others can be performed by the untrained. If all workers
engaged in each step of, say, an organization’s manufacturing process, all would have to have
skills necessary to perform both the most demanding and least demanding jobs. The result would
be that, except when performing the most skilled or highly complex tasks, employees would be
working below their skill level. And since skilled workers are paid more than unskilled workers
and their wages tend to reflect their highest level of skill, it represents an inefficient usage of
organizational resources to pay highly skilled workers to do easily tasks (Amrik and Kumar,
2003:130).

2.2 6 centralization/ decentralization

In some organization top managers make all the decision and lower level managers and
employees simply carry out their orders. At the other extreme are organizations in which decision
making is pushed down to the managers who are closest to the action. The former organizations
are centralized and the letter decentralized (Robins, P, and 2003: 239).

Centralization means that formal decision making authority is held by small group of people,
typically those at the top of the organizational hierarchy. Most organizations being with
centralized structures, because the founder makes most of the decisions and try to direct the
business toward his or her vision. But as organizations grow, they diversify and their
environments become more complex. Senior executives are not able to process all the decision
that significantly influences the business (steven. L. 2005: 433).
Centralization describes the degree to which decision making is concentrated at a single point in
the organization. If top managers make the organizations key decisions with little or no input
from below, then the organization is centralized. In contrast the more that lower level employees
provide input or actual decisions, the more decentralization there is. Keep in mind that the
concept of centralization- decentaeralization is relative, not absolute that is, an organization is
never completely centralized or decentralized. Few organizations could function effectively if all
decisions were made by only a select group of top managers; nor could they function if all
decision were delegated to employees at the lowest levels (Robins, P. 2003:239).

2.3 purpose of organizational structure

For over 2000 years, organizations have been structured as means of getting large numbers of
people to work toward common goal be it building a pyramid or fighting a war. Organizational
structure provides the systems architecture through each the essential tasks of an enterprise are
sub divided and grouped to create the process, decision centers, and a behavioral network that
carries out enterprise strategies. For a centuries an organizational structure has been represented
the boxes and lines an organizational chart. The tangible symbol of position and reporting
relationship throughout an enterprise such approaches to organization have been essentially
hierarchical in structure, which thus affected human behavior because structure can make it easy
or difficult for people in separate work units to take and work with one another. Structure affected
the way people size up situations, the way they interact with others, what they value and believe
to be important, time horizon, and even management style a phenomenon called differentiation,
which we describe later in the chapter. Largely during your lifetime organizational designs have
shifted to be less hierarchical structured, yet grouped and linked in ways that promote creativity
and continuous improvement behaviors rather than conformity. Organizational design is the
process managements go through to create meaningful structures, decision and information
networks, and governance systems. Organization design provides for:-

1. The dividing and grouping of tasks

2. Network to convey information
3. A structure for locating decision centers, or authority
4. Process for coordination, control, and conflict resolution and
5. The means to link key work units with appropriate external stakeholders such as customer
and suppliers. Designing an organization involves deciding how the enterprise should be
managed and led as much as it does creating structures to subdivide and allocate tasks
(Cutis. W, and phillip. L, 2001:87)

2.3.1 Benefits of organizational structure

According to Amrik and Kumar, they specifies some benefits of the organizational structure on
the book of organizational behavior and it says that while there are many different structure that
organization can adopt, depending up on the type of organization including whether it is a service
organization or a manufacturing organization, a well structure organization has many benefits
some of the beneficial outcomes of a good organization are:
 1. A good organization facilities attainment of objectives through proper coordination of all
activities.
2. In good organization, the conflict between individual over jurisdiction are kept to a
minimum.
3. It eliminates over lapping and duplication of work duplication only exists when the work
distribution is not clearly identified and the work is performed in a haphazard and
disorganized way
4. It decrease likelihood of run a rounds occur when we do not know who is responsible for
what and we are sent to wrong people for getting some work done.
5. It aids in wage and salary administration. A fair and equitable wage and salary schedule
is based upon the premise that the jobs with similar requirements should have similar
benefits.
6. Communication is easier at all levels of organizational hierarchies, since the line of
communication and the flow of authority is quiet clear in the organizational chart, the
inter communication is both clear and easier and it eliminate ambiguity.

2.3.2 Objective of organization structure

 The economic and efficiency performance of the organization and the level of resource
utilization.
 Monitoring the activities of the organization
 Accountability for the of the work under taken by groups and individuals members of the
organization and individual members of the organization.
 Coordination of different part of the organization and different area of work
 Flexibility in order to respond to future demands and developments, and to adapt changing
environmental influence.
 The social satisfaction of members working in the organization (Mulins. J, 1996:332).

2.4 Extremes of organizational structure

The organization structure is influenced by several factors such as corporate strategy, size,
technology and environment. There are two extremes of the organizational structure. The real
structure lives in between these two extremes depending upon the determining factors. These two
are mechanistic and organic extremes, stated by Mishra M.N 2003:365-66 as follows:-

Mechanistic: - extrme related to the component of the organizational structure, example, and
specialization, and departmentalization, chain of command, span of control, centralization and
formalization.A high degree of this component has been include under mechanistic factor
employees perform their jobs as per the routine system, they do not have the highest degree of
mechanistic approach. The communication is hierarchical it mean that the higher authority
instructs the lower authority has no power to question the order and suggests its own measure, it
is a form of bureaucratic structure, it is a highly a dictation structure of organization.

Organic: - under organic extremes the components of an organizational structure are more
loosely used and more freedom is given to the employees who take more interest in their job
performance rather than rule observation. It has a cross hierarchical and cross functional team
work. The components of an organizational structure are at a low level. Example, there is low
specialization, low departmentalization, fewer chain of command, wider span of control,
decentralization and less formalization. Upward, downward and lateral communications are
practiced under the organic structure, the employees are empowered to participate in the decision
making process. It is a highly democratic form of organizational structure.

2.5 factors influencing organizational structure

Mishra M.N (2003: 366-367) stated that the organization structure lies it in between the extremes
that is mechanistic and organic, as per the factors influencing the structure. The important factors
influencing the structure are corporate strategy, size, technology and environment.

Corporate strategy

The corporate strategy has an important impact on the structure. The dictatorial strategy of an
organization requires a bureaucratic structure. The mechanistic structure is loosened under the
democratic strategy. A structure is developed to achieve the objectives through the application of
corporate strategy. The structure is determined according to the strategy. The hierarchical
structured depend on the overall strategy at the corporate and departmental levels. Structure and
strategy are closely linked if the is any change in the strategy, the organization structure also
changed. It is therefore, essential to make a structure which can adopt itself according to the
changes in the strategy. The strategy frame works are imitation, innovation and cost
minimization. Imitation does not mean the limitation of other strategies. It refers to following its
own previous strategy. The pervious strategy helps to find out the suitable strategy for
minimization cost and maximization revenues. The scientific researchers are followed and
utilized in the organization. The innovation strategy refers to the changes in the existing strategy
for the better. The technological developments are included in the strategy. Cost minimization
refers to the curtailing of unnecessary expenditure. Innovation strategy deals with low
specialization, low centralizations and standardization. Plainly, it is stated that the innovation
strategy helps to maintain the mechanistic structure, where in control specialization; formalization
and centralizations are at a high level. The imitation strategy has a max of mechanistic and
organic strategy.

Size: - the size of an organization has important bearings on the organizational structure. A large
organization cannot perform effectively with simple or bureaucratic structure. It to adopt the
matrix structure. An organic structure is suitable for a small organization. The mechanistic
approach is more suited for a big organization. Specialization, departmentalization, formalization
and decentralization are required for big organization. A wide span of control and functional
command are also needed for large organization. The imitation strategy, where in the mixes of
organic and mechanistic approaches are adopted, is more suitable for large organizations. The
structure should have more adoptability as the increases. The number of factories and offices may
expand as per the need of person, place and position.
Technology: - developments influence the structure. A sophisticated technique a mechanistic
approach, where in high specialization rigid departmentalization, clearly chain of command,
narrow span of control and high formalization are needed. Decentralization increases innovation
and technological development. Technology refers to how input is transferred into output and
how it is applied in all the areas of management, via finance, marketing, personal, and production.
Routine tasks are related with departmentalization and formalization. Centralization is useful only
routine technology. Innovative techniques, decentralization is essential.

Environment: - the environment is the reactive results of various internal and external factors
influencing the behavior of people in an organization. The behavior of managers, employees,
customers, distributors’ government agencies and outsiders decides the specific form of the
environment. It is not static, but is changing form to rime and place to place according to the
needs of people and organizations the environment influences the behavior of people of an
organization and is also in turn influenced by their behavior. A situation has a great role to play in
shaping the environment. Uncertainty in the environment influences the adoption of a particular
structure. The capacity, complexity and volatility of the environment influence the organizational
structure.

2.6 classification model of organizational structure

The classical model refers to table traditional systems of organizational .It has been formulated by
max Weber ,F.W. Taylor Rolfe .Rogers and others ,Among all the theories under the classical
model the important theories are bureaucratic model and scientific management model and these
two models very clearly stated by Mishra M.N.(2003,368) as follows;

2.6.1 Bureaucratic model

The first person who put bureaucracy in a model forms was Max Weber, who in his book, the
theory of social and economic organization has expressed bureaucracy as an ideal organizational
stricter. He emphasized that it is a Weber has division of labor, the specialization, hierarchy,
abstract rules, impersonal relationship and qualifications.

Division of labor: - works divide into different parts and each part is given to a laborer who
interested in the job and has the competence to perform that promotion of the job. Employees are
obligated to perform their functions. The division of labor is done systematically with a set of
authority and responsibility.

Specialization: - The division of labor creates specialization, as performing the same type of job
makes the employees more competent. It is essentially to accomplish the goals of an organization.
Highly specialized functions make employees satisfied as they get the feeling of being distinct.
The responsibility easily carried out as the specialized job is well defined. No other member
infringes up on the rate of the specialized job. Specialization increases the speed of work and
increases the productivity.
Hierarchy:- a bureaucracy based on hierarchy which defines the scope of authority that can be
exercise by super ordinate on the subordinate. The success of an organization depends on the
principle of hierarchy. Max Weber has pointed out the bureaucracy provides the controlling
structure that is essential for any organization. It is a natural order and a human desire to control
others. The authority control is given only to those people who have adequate restraining power
over themselves. People enjoy hierarchy and are motivated to work hard to go to up in the
hierarchical order. Hierarchy of achieving the organizational goals. It has the capacity of
increasing employees, satisfaction and organizational performance.

Abstract rules: - rule and regulation are formulated to manage the bureaucratic organizations. It
is said that rules are gods for the employee working in a bureaucratic system. Going beyond rules
make employees punishable although it increase productivity and the performance. Rules are
permanent whereas, employees may come and go. It provides perpetual succession in the
organization. Rules ensure uniformity and coordination of functions. The difference in task
performance and uncertainties are narrowed down by rules.

Interpersonal relationships: -an official relationship is more prominent in a bureaucracy than a

personal approach to the employees. A bureaucracy has a formalistic impersonality without love
and affection, hatred and passion and without personal sentiments and attachment. An impersonal
attitude is developed to make the organization a healthy body there is no influence of society and
individuals on the corporate decision in an organization. There is no prejudice and preference.

Qualifications: - the bureaucracy develops only on qualification and recognition of merit.

Employment evolves a lifelong career and the employees should be promoted only on merit and
qualification. This provides stability and control. Qualification provides definite promptness of
decisions. Rational and impersonal decisions are possible if the selection, promotion and business
decisions are based on merit. The job decides the nature of merit.

2.6.2 Scientific management model

Frederick w Taylor, a mechanical engineer, hassponsored scientific management structure. On the
basis of his observation of the working pattern and investigation, he concluded that there is
enough scope for managing the functions and people scientifically. He empirically studied their
activities and initiatives. On that basis, he designed the organizational structure to get optimum
efficiency. The rules and regulations stipulated under the bureaucracy are scientifically modified.
Individual activities as well as corporate activities are systematically studied. Practical rather than
theoretical findings were utilized for creating scientific structure. This was done by replacing the
rule of thumb, by developing the elements of man’s work. By scientifically selecting and training
the workman, by using principles of science, in corporation and by division of work. The
principles scientific management includes reducing inefficiency, increasing systematic
management of man and materials and also the use of scientific management in all human
activities.
CHAPTER THREE

3. METHODS AND PROCEDURES

This study was be describe areas including participants, sampling techniques, Data gathering
instruments, procedures, methods of data presentation and analysis.

3.1 Research design

In order to describe how the current organizational structured in the organization,and it'ts
impact ,researcher will use descriptive methods.

3.2 Description of the study area

Dire dawa is federal region of democratic republic of Ethiopia. It is located on the Estern parts of
Ethopia enterprise is located in this city at sabian.

3.3 Population sample size and sampling techniques

As subject of the study both management and non-management staffs consider the total
population is 260employees from this a sample size of 50 (13%) of employees was taken as
representative portion of the population. The researcher used to get this sample size by the
following formula the total populations of 260 n=N/1+N (e) 2

Where this formula:-n= sample size

N=number of population

E=error

n =260/1+260 (0.13) 2=48

It is necessary to used stratified. Sampling method since the population is heterogeneous in terms
of their management and non-management departments and so the proportionate stratified
sampling is great role because it gives the sample opportunity to select from different groups.
Indicate strata a here later sample random sampling based used because it provides equal chance.
Finally lottery method used to distribute the questionnaires. The data type used quantitative.

3.4 Types of data collection

Primary data: - The primary data collected through questioners and interview guide to gather data
from management of the organization. Through both open ended and closed ended question. Open
ended questions are questions that need more explanation for the given topic. E.gwh.-question.
Closed ended questions are question type they need either yes or no response.

Questionnaires was be the main data gathering instruments. This method wasenable the research
to guide the informants when they get out of the concepts.
Secondary data: - The secondary data collected from the organizations records, reports and other
reference materials.

3.5 Procedure
The current research was select stratified sampling. The researcher was used both questionaries’
and purposely interview technique further more in the researcher was be assess by the time
schedule of the research. To check the reliability, the researcher was cross-check the data by using
various techniques.

3.6 Method of Data analysis and Presentation

After data are obtain from primary secondary sources using questionnaires, interview, guide and
document method they systematically complied presentation analysis tabulated and interpret
using descriptive statistics in terms of percentage, table and figure classified in terms of their
nature qualitative and quantitative interpretation and finally writing down all what researcher
have gotten. The researcher was be analysis gathering from questionnaires is that collected from
respondent about researcher topic and the depending the response the researcher was generalize
that topic or title and from the interview the researcher analysis the depend on the current
responds. So that collects the manager or concerned body concluded the study.

4. Chapter Four

Data presentation, analysis and interpretation

4.1 Introduction
This chapter deals with analysis and interpretation on the basis of data gathered through
questionnaire and interview. In order to obtain information for the study a total (forty-eight)
questionnaireswere distributed to employees to Dire Dawa water sapply and sanition. The
employees (respondents) randomly selected from each statement of department of employees.
Among 54 questionnaire, was distribute to 48 were correctly filled and returned used for analysis
and interpretation of data here. The analysis and justification of the finding from the information
were approached by summarizing the relevant question and respective responses for a topic on an
issue and then further analyzed sequentially.
Tables, percentage and figures were used to present interpreted data using descriptive method.

Table 4.1 Respondent’s profile

No I t e m s N u m b e r %

1 f x

M a l e 2 8 5 8 %

a l e 2 0 4 2 %

T o t a l 4 8 1 0 0 %

2 A g e

1 8 - 2 4 8 1 9 %

2 5 - 3 4 2 9 6 9 %

3 5 - 4 4 4 9 . 6 %

4 5 - 5 4 1 2 . 4 %

5 5 a n d a b o v e 0 0

T o t a l 4 8 1 0 0 %

3 E d u c a t i o n a l l e v e l

B e l o w G r a d e 1 0 0 0

1 0 / 1 2 G r a d e c o m p l e t e 8 1 9 %

1 0 + 3 ( D i p l o m a ) 9 2 1 . 4 %

B A / B S c 2 0 4 7 . 6 %

M A / M S c a n d a b o v e 5 1 2 %

T o t a l 4 2 1 0 0 %

4 Y e a r s o f e x p e r i e n c e

B e l o w 1 y e a r 1 0 2 3 . 8 %

1 - 3 y e a r s 9 2 1 . 4 %
 4 - 6 y e a r s 1 0 2 3 . 8 %

7 - 9 y e a r s 6 1 4 . 3 %

1 0 a n d a b o v e 7 1 6 . 7 %

T o t a l 4 8 1 0 0 %

5 Individual got relevant experience with his/her current occupation

S t r o n g l y A g r e e 1 1 2 6 %

A g r e e 2 6 6 2 %

D i s a g r e e 2 4 . 8 %

S t r o n g l y d i s a g r e e 1 2 . 4 %

N e u t r a l 3 4 . 8 %

T o t a l 4 8 1 0 0 %

Source: questionnaire survey 2016

Table 4.1 indicates sex, age, educational level; work experience and individual got relevant
experience with current occupation.

According to the above table in item number 1, out of the total 42 respondents, 20(48%) were
male and the remaining 22(52%) were females. From this one can understand that were females
employees was greater than males employees in the organization.

Regarding the age in item 2 of respondents, 8(19%) was between 18-24 years old. Next 29(69%)
of the respondents were within the range of 25-34 years, from 4(9.6%) were from 35-44 years.
1(2.4%) were from 45-54 years and finally there were no 55 and above of age. This implies that
the respondents were youngster who is productive of the organization.

As can be seen in table 4.1 item number 3, with regard to educational back ground of the
respondents, no respondents were grade 10, 8(19%) had 10 or 12 grade completed, 9(21.4%) had
10+3 or diploma, the majority is 20(47.6%) had their first degree and finally 5(12%) had
MA/MSc and above. Hence the majority 29(69%) of the respondents were diploma and degree
Table 4.1, item 4, shows years of employee’s experience. Accordingly, 10(23.8%) of respondents
had below 1 year of service, 9(21.4%) had between 1-3 years’ service, 10(23.8%) had an
experience in between 4-6 years, 6(14.3%) had experience in between 7-9 years and 7(16.7%) had
an experience 10 and above years.

Hence, the organization holds employees who had almost all levels of experience in the
organization. Therefore, one can inter that it was possible to get all levels of information for
employees with similar years of experience.
In table 4.2, item 5, indicates individual got relevant experience with current occupation, 11(26%)
of the respondents strongly agree, 26(62%) the majority of respondents that agree, on the other
hand, 2(4.8%) are respondents claimed that neutral with in statement. Thus, it is possible to see
that large number 37(88%) of respondents agreed. Only few portion of employees were disagree
with the statement.

4.2 Formation of organizational structure

Structure is the architecture of business competence, leadership, talent, functional relationships
and arrangement in its from identified structure as the basis for organization to include
hierarchical levels and span of responsibility, roles and position or mechanism for integration and
problem solve (Wolf, 2002).

Table below indicates formation and conformity of organization structure. Table 4.2 conformity
of organizational structure

Table 4.2 Conformity of organizational structure

No D e s c r i p t i o n Strongly agree A g r e e Disagree Strongly disagree Neutral Total

No % No % No % No % No % No %

1 Do you believe DDSSA organizational structure goes to gather wit h its work 9 4 . 4 2 7 64.2 5 1 2 1 2.4 0 0 42 100
proces ?

2 The organizational stricter is suitable to achieve vision and mis ion 6 14.2 2 6 6 2 9 21.4 1 2.4 0 0 42 100
 3 The organizational structure influences the positive implication behavior of the company 2 4.8 2 9 6 9 10 23.8 1 2.4 0 0 42 100

4 Do you believe that organizational structure of DDWSSA negatively af ects its performance? 2 4.8 1 3 3 0 9 1 8 42.8 6 14.3 3 7 42 100

5 The organization al owed the fre dom to work ac ording to their own proces alternative 1 2 . 4 1 5 35-6 2 0 47.6 5 1 6 1 2.4 4 2 100

Source: Questionnairesurvey 2016

As it be clearly observed from item 1 of table 4.2 9(21.4%) of the respondents are strongly agree,
27(64.2%) the majority of respondent claimed that they agree, on the other hand 5(12%) of the
respondents are disagree with this statement. Thus it is possible to see that only very two portion
of employees are dissatisfied with the organizational structure goes to gather with it’s the work
process.

As it is indicated in the above in item 2, 6(14.2%) of the respondents are claimed that strongly
agree, 26(62%) the majority of respondent claimed that agree with in the statements that
organizational structure is suitable to achieve vision and mission of the company. As it was shows
9(21.4%) of respondent disagree with in the statements. And finally, 1(2.4%) of the respondents
said that strongly disagree and none of them are neutral. Hence, from the respondents the
researcher can conclude that the majority of employees are satisfied with the suitability of
organizational structures to achieve its objective and goals.

As it can be seen in the above item 3, 2(4.8%) the respondents are strongly agree, 29(60%) the
large number of respondents claimed that they agree with the statement 10(23.8%) of respondents
claimed that they are disagree, 1(2.4%) remained strongly disagree with in the statements. Hence,
from the data it is possible to inter that the organizational structure positive influences the
implication behavior of the organization.

Table 4.2 item 4, as it was show 2(4.8%) of respondents strongly agree, 13(30.9%) the
respondents they are agree, 18(42.8%) the majority claimed that they are disagree with the
organizational structure of DDSSA negatively affects its performance. Hence, from the
respondents the researcher can say the majority of employees its organizational structure was
positively of employees its organizational structure was positively affect, on the performance.

As can be seen in the above item 5, 1(2.4%) of respondents strongly agree, 15(35.6%) the
respondents claimed that agree, 20(47.6%) the majority of the organization allowed the freedom
of work according to their own process alternative. As it was show, 5(16%) of the respondents are
strongly disagree, and finally, 1(2.4%) of respondents was neutral with the statement.
According to the majority, 25(63.6%) of respondents in the organization not allowed the freedom
to work according to their own process alternative for the employees.

4.3 Integration of organizational structure

Organizational structure is process of combining the work, which individuals or group have to
perform with the facilities necessary for its execution, that duties so performed provide the best
channels for efficient, systematic, positive and coordinate applicable effort. Each individual in the
organization is assigned a role, responsibility and necessary authority. Each person who assigned
to an activity much knows his position, his role and his relationship with others. The activities of
all individual are coordinated and integrated in to common pattern in order to achieve the
organizational objectives organization is needed for the purpose of integration of driver’s
activities in a cohesive manner. Optimum use of human skill and efforts is achieved. A good
organization requires the right person for the right job and this avoids miss application human
resource thus resulting in optimization of employees efforts. This would ensure efficiency in the
functioning of the enterprise Steven. L (2005:428).

The table below indicates how role, authority are assigned and how works are integrated in the
organization.

Table 4.3 integration of organizational structure

No D e s c r i p t i o n Strongly agree Agree Disagree Strongly disagree Neutral Total

No % No % No % No % No % No %

1 There is clear line of authority 5 10.4 15 31.2 2 2 46.4 4 8.3 2 4.1 48 100

2 Do you believe that does the organizational structure have positive impact on performance? 10 2 1 20 4 2 1 2 2 5 4 8 0 0 48 100

3 Do you believe that employees in the organization are assigned with in a clear role? 9 1 9 11 2 3 2 3 4 8 5 1 0 0 0 48 100

4 “The activities of all individual are concentrated and integrated in common patterns” 3 7 . 1 2 0 47.6 1 4 33.4 1 9. 5 1 2.4 42 100
 Very high H i g h Medium L o w Very low T o t a l

5 To what extent the activities that are carried out in your departments related to each other? 4 9.5 17 40.4 1 4 33.4 7 0 7 16. 7 4 2 100

Source: questionnaire survey 2016

As it presented in the above table 4.3 of item 1, 3(7.1%) of the respondents were strongly agree,
9(21.4%) of the respondents agree with a segment clear role of authority, 22(52.4%) the majority
of respondents claimed that disagree with the statements, 6(14.3%) of respondents claimed they
are neutral. Hence, from the data it can be seen that the 28(66.7%) of employees are dissatisfied
in clarity of line of authority in the organization.

As it can be seen the above item 2, 4(9.5%) of respondents claimed that they strongly agree,
18(42.9%) of the respondents agree with the statement that organizational structure have positive
impacts on performance of the organization, 15(35.6%) of the respondents they were disagree
with the statement, 2(4.8%) of the respondents claimed that they were strongly disagree and
finally, 3(7.1%) of respondents were neutral. Thus, it is possible to see that the half and above
20(50%) of the employees are satisfied with the organizational structure have positive impacts on
its performance.

As it can be seen with the item 3, 6(14.3%) of the respondents were claimed that they are agree
with the statements, the majority of respondents, 20(47.6%) were dissatisfied with their role,
3(7.1%) of them were strongly disagree and finally, 2(4.8%) of respondents were neutral with the
statement. It is possible to see that the majority, 23(54.7%) of the employees are dissatisfied with
in the proposition of employees in the organization assigned clear role.

As can see in item 4, 3(7.1%) of respondents were strongly agree, 20(47.6%) of the respondents
claimed that they agree with the statements the activities of all individuals concentrated and
integrated in the common patterns, 14(33.4%) of the respondents were disagree with the statement
and the finally, 1(2.4%) of respondents was neutral. From the respondents the researcher can say
that the majority of employees are assigned based on their activities.

As can be seen in table 4.3 item 5, 4(9.5%) of respondents were very high, 17(40.4%) of the
majority of respondents feel that the activities carried out in the department are valuated to each
other by rating high. But, 14(33.4%) of respondents claimed that they were low with this
statements finally, 7(16.7%) of respondents were said noting (neutral). Hence, this shows that the
respondents are some why comfortable about the relatedness of the activities carried out there.
4.4 Employees communication in the organizational structure
Organizational structure is determined by a fit befell information processing requirements so
people have too neither little nor too much relevant information. However, the how of
information is essential to the organizations. The organizations structure should be designed to
answer those individuals and department that needs to coordinate their effort have line of
communication they are built in to structure. Companies may use varies organizational structure
for communication purpose. Large companies have many level of management. Therefore, the
most effective way to communication is from top of the organization to down (D. Penguin, 2003).

The below tables implies the communication between top management and employees in the
organization.

Table 4.4 Employees communication in organizational structure

No D es c r i p t i o n Very high H i g h Medium L o w Very lo w T o t a l

No % No % No % No % No % No %

1 To what extent you get the information flow betwe n you’re in for mediate supervisor and subordinate 5 10.4 15 3 1 . 2 22 4 6 4 8.3 2 4 . 1 4 8 100

D es c r i p t i o n Strongly agree Agree Disagree strongly N eutral T o t a l

No % No % No % No % No % No %

2 “Do the objectives of the company clearly communicated to you?” 11 2 3 33 6 9 3 6.25 1 1 2 0 0 4 8 100

3 “There is enough communication with in the organization” 3 6 30 6 3 1 0 2 0 0 0 0 4 8 100

Description Very high h i g h Medium l o w Very low Total

No % No % No % No % N o % No %

4 Top management communicates all the relevant information ac urately and timely within the employees 7 14.5 25 5 2 9 1 9 4 8.3 6 . 2 0 4 8 100

Description Strongly agree Agree Disagree Strongly disagree Neutral Total

No % No % No % No % No % No %

5 Does the manager encourage to employee I the involvement of the organizational structure? 8 16.6 20 4 2 1 2 2 5 5 10.4 6 9.5 4 8 10 0
Source: Questionnaire survey 2016

As it can be clearly observed from item 1 of table 4.4, 2(4.8%) of the respondents were very high,
18(42.9%) of respondents claimed that they are high, 6(14.3%) of them were medium, 13(30.9%)
of respondents were rejected this statement and finally, 3(7.1)of respondents said very low. The
researcherconclude that the major 26(61.1%) which are high of respondents, so the information
flow between their intermediate super visor and subordinates are good relationship.

As item be seen in table 4.4 of item 2, 3(7.1%) of respondents were strongly agree, 21(50%) the
majority of respondents agree with this statements, 12(28.6%) of respondents were disagree,
4(9.5%) of them were strongly disagree and finally, 2(4.8%) of respondents were neutral. Hence,
25(57.1%) the majority of respondents agreed with the statement “objective of the company
clearly communicated to you” were accepted by them. That means the objectives the organization
clearly communicated to employees.

Table 4.4 of item 3, 2(4.8%) of respondents were strongly agree, 22(52.4%) the majority of our
respondents claimed that they are agree with the statement, 13(30.9%) of them disagree, 4(9.5%)
of respondents were strongly disagree and at finally, 1(2.4%) of respondents was neutral with the
statement. So, the researcher concluded above half of respondents 52.4% are agree with that there
is enough communication with the organization.

As it represented in the above table 4 of item 4, 4(9.5%) of the respondents claimed that they very
high, 11(26.2%) of the respondents were high, 14(33.4%) of the respondents were medium with
this statement, 9(21.4%) of the respondents claimed that they were low and finally, 4(9.5%) of the
respondents were very low. Hence, it is possible to see that above half 59.6% of respondents are
high and this implies top management communicates all the relevant information accurately and
within he employees in the organization.

As it be seen in item 5, respondents 1(2.4%) is strongly agree, 16(38.1%) of the respondents were
agree, 17(40.4%) of the respondents disagree with the statement “Does the manager encourage to
employees in the involvement of the organizational structure, 5(12%) of the respondents were
strongly disagree and finally, 3(7.1%) of respondents were neutral. The researcher conclude that
as seen from respondents 22(54%) of them disagree with that manager encourage employees
involvement in the organizational structure. The involvement of employees in the organizational
structure in the organization is low.

Qualitative data analysis

In order to cross check the data from the questionnaires, the student researcher hold in depth
interview with the vice-manager of the organization, personal manager some employees.
Accordingly, the results of the interview are presented here under.
 1. What do you think about the width of the span of control in your organization?
The replay from was, the width of spam of control within the organization is not difficult for
manager. In the department different size of employees. The large size of departments are top
employees and above and two supervisors. The researcher concluded that as Steven. L.
(2005:431) stated that today, the best performing manufacturing facilities currently have all
average of 31 employees per supervisor and 6 supervisor per manager.

Therefore, the organizations has wide span that difficult to control employees lees control of
employees tend to reduce its performance.

2. How do you see the flexibility of organization structure in the TWWCE?

In order to do their work gently and speedy ware designed flexible structure and this help them
work with their employees and to satisfy their public by service. The flexibility of the
organization measure its performance annually, due to the organizational structure whether
flexible to perform over all organization or not when weakness seen in the performance the
management.

As the researcher point of view, less flexible because of, when gaps occur in short period before
amendment. This inflexible hinder on its construction performance.

3. How do you see the decision making practice in your organization?

The decision making in the organizational usually based on top management and the collective
agreement, this means that the selective manager of different, department the manager of workers
association and the executive of the workers association are participate in the decision making.
Employees not participate in the issue of organization. As the result to this replay, the researcher
concluded that the decision making practices is done by the managers and the employees. When
the employee’s involvement increases in organizational affairs and decision making processes the
sense of belongingness among the employees will increase on the other hand, the organization to
gather different portions and enable to use every available opportunity at hand. So, limited
employees in decision making reduce the organizational performance.

4. What basis of departmentalization that you generally followed in your organizational

structure? How tasks are divided, grouped and coordinated?
In the organization departmentalization is matrix form of structure. Because of, matrix structures
occur in project based organization. The departmentalization is divided the departments based on
the arrangement of the organization and grouped similar task under the same department and they
are all coordinated by manager. For effective administration and management the
departmentalization in the organization is a key factor for the success and avoid work load in the
matrix structure is combining of two structures, existence of two bosses on departments also
dilute accountability. And also this structure tends to generate conflict, organization politics and
stress those impacts on its performance.
 5. To what extent the organization permit employees participate in designating or
redesigning the organizational structure?
In the organization the employees are not participate in the organizational structure. In the
designing and redesigning of the organizational structure, the board of directors, top managers,
departmentmanagers and the executive worker association are necessary passed the organizational
structure. As the result to this replay, low or no involvement of employees in the organizations
designing and redesigning structure.

The researcher perceive that organization to be successful the participating must be there, the
participating of employees in designing or redesigning of organizational structure has a positive
influence in the overall organization performance.

6. How the authority delegate to the employees?

The organization delegate the authority to employees in good manner. The delegations of
authority for employees are based on the organization senate and other rule and regulations
mainly professional to that authority, work deductive and good work ethics. Specially, based on
the employee’s ability and willingness to perform to his/her sale gated authority. The Researcher
concluded that an authority delegation to employees simple to delegate.

CHAPTER FIVE

Summary, conclusion and Recommendations

The ultimate of this study focus on employee’s attitude on organizational structure, a case study
on dire dawa water sapply and sanition Athority in order to achieve this objective, related
literature reviewed, data from replies and interviewed was held with the division of human
resource department, vice manager of the organization and employees. Questionnaire was
distributed to the sample respondents.

The data obtained were presented using percentages and summarized as shown below. Moreover,
based on the summary, conclusions are drawn and recommendations are forwarded.
5.1 The major finding of the study is summarized as follows:-
The sex ration in the organization shows 28(58%) were male employee. But interview results and
organizational documents shows that there is no discrimination on employees hiring and
employees got their work position based on their qualification.

 As can be revealed from the responses the age, educational qualification,

years of experience and their assigned task was not the barrier to be on
positive side of their organization.
 As indicated in individuals got relevant experience with current occupation,
significant number 37(88%) of the respondents are agreed.
 The large number 27(64.2%) of the respondents are agreed that organizational
structure goes together with its work process.
 The other 26(62%) the majority of respondents agreed that the organizational
structure is suitable to achieve vision and mission of the company.
 It is revealed from responses the majority 29(69%) of respondents were
agreed the organizational structure has positive influences on the
implementation behavior of the organization.
 As the interview result replies employees on the participation of the
employees in the designing and redesigning of the organizational structure,
low employees concern with designing and redesigning of organizational
structure.
 The largest number 25(63.6%) of respondents disagree with the organizational
allowed the freedom to work according their own process alternative of
employees.
 The other large number was 28(66.7%) disagree that there is clear line of
authority. And also largest replies of disagree were given for individuals in the
organization is assigned with a clear role and reasonable responsibility.
 As can be revealed from responses, 22(52.4%) are agreed with and satisfied
with the organizational structure have positive impact on its performance.
 The majority, 23(54.7%) of respondents are dissatisfied with in the
organization assigned with a clear role of employees.
 As indicated in the responses 23(54.7%) above half that agree with activities
of all individuals are concentrated and integrated in common patterns.
 The half 21(50%) of respondents are agree with the extent of the activities that
are carried out in departments related to each other. But from interview
replies, organization uses matrix depart mentation combining of two structure,
existence of two boss on departments also dilute accountability and tend to
generate conflict and organization politics and stress.
The majority of respondents 24(57.2%) replies that the objective of the
company clearly communicated to the employees.
 22(52.4%) of the respondents there is enough communication with in the
organization
  Greater than half 29(59.6%) of the respondents replies top management
communicates all the relevant information accurately and timely to the
employees.
 The majority 22(52.4%) of respondents were disagree with that manager
encourage employees involvement in the organizational structure.

5.2 Conclusions
This section provides general conclusion about issues raised and discussed in the data analysis
part of the chapter. Taking the data analysis and the findings in to account the following
conclusions could be reached.

 According to the data and replies from the interview high light, and as stated in the
literature review, the organization structure goes together with its work process and the
organizational structure is suitable to achieve vision and mission of the organization.
 The researcher observes the width span of control within the organization is wide span
that difficult to control of employees, tends to reduce effectiveness on performance.
 Based on the majority of employees the researcher point out that participation of
employees in the designing and redesigning of organizational structure was low.
 As the majority of the replies agreed and researcher conclude that organizational
structure is positively influence on the implementations.
 The result shows that the majority of employees disagree that the organization allowed
the freedom to work according to their own process alternative of employees.
 Based on the employee’s despondences and as the researcher points of view there are
disagreed with the clear line of authority, and organization employees are dissatisfied
with the assigned clear role.
 The researcher observed that the organizational structure is the matrix from of
departmentalization, because the matrix structure occurs in project based organization.
 The majority of replies agreed communication of the employees and managers is efficient
and the level of satisfaction in flow of information between and superior and subordinates
is high.
 According the findings the decision making in the organization is decided by top level
managements, employees does not involve in the decision making.
 At last, the respondent replies that top management communicates all the relevant
information accurately and timely within the employees.

5.3 Recommendations
The researcher like to recommend the following points which are drawn the study for the
betterment of organizational structure and its impacts on performance of dire dawa water supply
and sanition Authority.

 It is believed that in organizational structure the information is important factors in

development and continuous growth of the organization. The organization should
maximize the level of access to reliable information. Besides managers create and facilitate
the flow of necessary information and accessibility for and individual in the organization.
 The company has wide span of control that means it is difficult to manage the employees.
So company should medium span of control that makes employees flexibility and good
working condition results effectiveness and efficiency or organization on its performance.
 The researcher also recommends that the involvement and participation of employees in
designing and redesigning of organizational structure is low. So, the organization should be
arranging more training, meetings and seminars the organization can increase the level of
involvement of employees in the organizational structure designing and redesigning
activity. This will decrease the level of disagreement and increase the level of belongings
of the organization among the employees.
 In the organization there is no clear line of authority. So, the researcher recommended that
the company should implement on clear responsibility and authority relationship with in
the structure andthe communication of the employee and managers.
 The organization not allowed the freedom to work according their own process alternative
of employees. Therefore the researcher recommended that, the organization should increase
the employees freedom to work there, the organization should increase the employees
freedom to work their own process, increase the work specialization and assign the work
based on their qualification to achieve the goals of organization.
 Finally, the participation of employees in decision process is low. So, the organization
should increase the employee’s participation in decision making process on the issues of
the organization. Makes sense of belongingness of employees will increase. Moreover, the
employee’s involvement on decision making process will help the organization to gather
different opinions enable to use every available opportunity at hand.
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Appendix 1

Dear Respondents

The objective of this questionnaire is the assessment of organizational structure and its impact on
performance in Mekelle University College of business and economics department of
management

DIRECTION

Please give us your experience as honestly and as openly as you can the information that provided
to treated strict confidence

 There is no need to write your name

 Please indicate your choose by encircling your answer.
  Please put your opinion in please provided where writing is necessary

Respondent profile

1. Gender

A. male B. female

2. Age

A. 18-24 B. 25-34 C. 35-44 D. 45-54

3. Educational level

A. below 10 B. 10/12 complete C. 10+3 diploma

D. BA/ MSC MA /MAC and above

4. How long have you working in this organization?

A. below 1year C.1-3 year

B.4-6 year D.7-9 E. 10andabove

5. Have you any relevantexipirancewithyour current occupation?

A strongly agree C agree E neutral

B disagree D strongly disagree

Conformity organizational structure in the organization

6 do you believe DDSSA organizational structure go together with the work process?

A .strongly agree C. agree. neutral

B. disagree D .strongly disagree

7 .the organizationstructures are suitable to achieve vision and mission of TWWCE?

A strongly disagree C agree E neutral

B disagree D strongly agree

8. Organizationalstructureinfluencesthe behaviors of the company?

A strongly agree C agree E neutral

B disagree D strongly disagree

9.Do you believe t that organizational structure of TWWCE negatively affects its performance?
A yes B no explain it?

10.The organization allows you to discharge your work assign freely?

A. strongly agree C. agree E neutral

B. disagree D. strongly disagree

11.There is clear line of authority? in w/c the organization follows strictly

A strongly agree C agree E neutral

B strongly disagree D disagree

12.Do you believe that the organization structure positive impact on performance?

A strongly agree C agree E neutral

B dies agree D strongly disagree

13. Do you believe that employees in the organization are assigned withina clear role?

A strongly agree C agree E neutral

B disagreed strongly disagree

14 the activities of all individual are concreted and coordination in common pattern?

A strongly agree C agree E neutral

B disagreed strongly disagree

15. To what extent the activities that are carried out in your department related to each other?

A very high C high E neutral

B low D very low

18.To what extent you get the information flow between your so supervisors and subordinate?

A very high C high E medium

B low D very low

17.Dotheobjective of the company Cleary communicated to you?

A. strongly agree B. dis agree C. Agree

 D. strongly dis agree E. neutral

18. There is enough communication with in the organization

A. dis agree B. strongly agree C. agree D. strongly dis agree E. neutral

19. To management communication to all the relevant information a currently and timely with in
the employees

A. very high B. high C. medium

B. lowD.very low

20.Doesthemanger encourage to employees in the involvement of in the organization?

A strongly agree C agree E neutral

B disagree D strongly disagree

Appendix 2

INTERVIEW QUESTIONS

1 what do you think about the width of the span of control in your origination

2 how you see the flexibility of the organization structure in Twwce

3 how do you see the decision making practices in your organization

4 what basis of department ion that you generally fool wed in your organizationalstructure how
the tasks are divided; grouped and coordinated

5 to what extent the organization permitsemployees participate in designing or redesigningthe

organization structure

6 how the authority delegated to the employee