1

THE EFFECTS OF ORGANIZATIONAL STRUCTURE

IN THE MANAGEMENT OF ORGANIZATION
(A CASE STUDY OF LIFE VEGETABLE
OIL, NNEWI)

A PROJECT PRESENTED TO THE DEPARTMENT

OF PUBLIC ADMINISTRATION, SCHOOL OF
BUSINESS STUDIES, FEDERAL
POLYTECHNIC, OKO.

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF NATIONAL DIPLOMA IN THE
DEPARTMENT OF PUBLIC ADMINISTRATION

BY

PATRICK MONDAY
FPO/ND/PAD/09/281

DECEMBER, 2011.
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APPROVAL

The project report has been read and approved as

satisfying to the requirement for the award of National

Diploma in Department of Public Administration in

Federal Polytechnic, Oko.

By

______________________ ____________________
Mrs. Eberinwa M.O. Mrs. Nwankwo Rose
Supervisor Head of Department

_____________________ ____________________
External Examiner Mr. CHuku L.U.
Dean School of
Business Studies
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DEDICATION

This project work is dedicated to God Almighty

the creator of heaven and earth and the maker of

everything. And also to my belovely parents Mr.

Samuel Enuwete and his wife Mrs. Grace Enuwete

and my sister.
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ACKNOWLEDGEMENT

With gratitude to God Almighty, I want to use this

opportunity to greet my belovely mother Mrs. Grace

Enuwete and his husband Mr. Samuel Enuwete, and to

my Pastor Mr. Sunday Ogugun and my lovely sister

Blessing, Oghenefijero, Oghenetoberi, for they are

assistance and encouragement which they gave to me

when gave me when I was coming to this polytechnic. I

pray may the God Almighty grant them wisdom which

human being cannot gave, and abundant blessing from

above upon their life. And also to my friends Righteous,

Solomon, Emmanuel and Samuel. What I have to say is

may the Almighty God, who is the creator of the heaven

and earth be with you always and bless you all, through

Jesus Christ our Lord (AMEN)

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SYNOPSIS

THE MAJOR PURPOSE OF THIS STUDY IS TO EXAMINE THE

EFFECT OF ORGANIZATIONAL STRUCTURE ON
MANAGEMENT WITH REFERENCE TO LIFE VEGETABLE
NNEWI. THE POPULATION OF THIS STUDY CONSISTED OF
90 WORKERS OF LIFE VEGETABLE COMPANY. THE SAMPLE
OF THE STUDY WAS CONSISTED OF 40 OUT OF 90 STAFF
OF VEGETABLE COMPANY OIL UMUDIM NNEWI. THE
SAMPLE WAS DRAWN USING SYSTEMATIC RANDOM
SAMPLING THE DATA GATHERING INSTRUMENT WAS
QUESTIONNAIRE. THREE RESEARCH QUESTIONS WAS
DEVELOPED AND VALIDATED WHICH GLIDED THE STUDY.
THE RESEARCH DESIGNED UTILIZED IN THE STUDY WAS A
SURVEY METHOD. SAMPLE PERCENTAGES WERE USED TO
ANSWER THE RESEARCH QUESTIONS. THE MAJOR
FINDINGS OF THIS STUDY WAS THAT THE
ORGANIZATIONAL STRUCTURE HAS CONTRIBUTED
IMMENSELY TO THE EFFICIENCY OR INEFFICIENCY OF
WORKERS IN THE ORGANIZATION. THE DELAY IN DECISION
MAKING AFFECTS THE EFFECTIVENESS OR PERFORMANCE
OF WORKERS IN THE ORGANIZATION. ORGANIZATIONAL
STRUCTURE ENCOURAGES INEFFICIENCY AND
INEFFECTIVENESS. IT WAS CONCLUDED THAT FOR EVERY
COMPANY TO BE EFFECTIVE THERE MUST BE AN
ORGANIZATIONAL STRUCTURE. AND EACH STRUCTURE
MUST BE DOING THE RIGHT THING AT THE RIGHT TIME.
THE RESEARCHER RECOMMENDED THAT INFORMATION IS
VERY ESSENTIAL TO EVERY ORGANIZATION.
CONFIDENTIAL INFORMATION ABOUT THE ORGANIZATION
SHOULD BE KEPT SECRET, MANAGERS SHOULD LIVE
EXEMPLARY LIVES BY AVOIDING CORRUPTION, ABUSE OF
POWER, OFFICIAL INDISCIPLINE, FAVOURITISM AND
NEPOTISM ENSURING THE ORGANIZATIONS RULES AND
REGULATION ARE IMPLEMENTED.
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TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Table of content

Abstract

CHAPTER ONE

1.1 Introduction

1.2 Statement of problem

1.3 Purpose of study

1.4 Significance of the study

1.5 Research Questions

1.6 Limitation of study

1.7 Delimitation
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CHAPTER TWO

2.1 Literature Review

CHAPTER THREE

3.0 Research Methodology

3.1 Target population

3.2 Sample size

3.3 Instrument for Data Collection

3.4 Authenticity of Data Collection

3.5 Data Collection Techniques

3.6 Source of Data

CHAPTER FOUR

4.1 Data Presentation and Analysis

CHAPTER FIVE

5.1 Conclusion and Recommendation

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5.2 Recommendation

References

Bibliography

Appendix

Questionnaire
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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The effects of organizational structure on any

worth while enterprise cannot be over emphasized.

This is because organizational structure hinges on the

very foundation of effective business enterprises. The

essential element necessary for effective organization

this include;

a. The nature of the establishment itself.

b. It objectives

c. Productivity

d. Services and interaction

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For any meaningful business to thrive, these

factors must be placed in motion and must work

harmoniously amongst each other.

Organization is defined in many ways. In the

study of the management, it can be referred in

structure of relationship among individuals.

Organizations are primarily complex of goals

seeking of unit which in order to survive must

accompany secondary task e.g. they must maintain

their internal system to co-ordinate the human side of

the enterprise and must adapt and to shape the

external environment.

EITON (1984) stated that human affiliation of

man could be a motivating force and viewed of the

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industrial organization as a social and economic as

well as technical system.

According to Elton, managers should be judged

by their ability to maintain co-operation, this implies

that once a primary group is seen as motivating force,

it may be said that a managerial elite will become

absolute as the works, the group itself become the

decision making. Whether or not, this is possible. It

does appear that changes is needed in inter-personal

relations and it is here that management can help by

instilling value which permits the expression of feeling

and trust and concern for the individual.

The organizational structure is the basic

framework within which the executives decision

making behaviour occurs. The quality and nature of

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decision made are influenced by the nature of the

organizational structure as an element of management

and it concern with grouping of activities which must

be grouped logically and authority must be granted so

that conflict do not occur.

According to Agwu Akpala (1988) management is

the process of combing and utilizing or allocating

organization inputs (men, material and money by

planning, organizing, directing and controlling for the

purpose of producing outputs goods and services or

whatever the objective are desired by the customers so

that the organization objectives are accomplished.

In this process, work is performed with and

through organization personal is an over changing

organization environment. Management can also be

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defined as the effective and efficient utilization of

human resources and non human resources to

achieve organizational goals, hence producing goods

and services desired by customers. We believe that by

this studying the management process, you can

increase your effectiveness and efficiency as a

manager. To be effective, one need to be combine on

his study of management with experience. This means

that the management can also be got through

experience.

1.2 STATEMENT OF THE PROBLEM

The need of the effect of organizational structure

on management cannot be over emphasized. This is

because goal attainment is an important index in an

organization.
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Organization structure is a practical division of

work, the scalar process and span of management.

The quality and worth of any organization depend on

the caliber of manager that behind it.

Organization with the effective managers is likely

to be successful while those without effective

managers may fail. In a developing country like

Nigeria, many problems are involved in effect of

organizational structure on the management.

POOR COMMUNICATION

This means that a manager who does not possess

adequate human relation skill with his employees is

likely to fail there, as one with adequate human

relation skills with his employees to succeed is that

when there is a good rapour among the managers and

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the employees, the goal and objectives of the

organization is more likely to be achieved but in some

organization there is lack of communication or good

rapour among the managers and their employees.

LACK OF RAW MATERIALS IN THE ORGANIZATION

Insufficient resources can hinder productivity of

an organization, this means that organizational

resources need to be allocated to the various

individuals and units and it is a manager who does

this in order words he is the resources allocator.

PROBLEM OF ADVERTISEMENT

This is another problems that hinders some

organizations. Some organizational product mere not

known by the buyers in the market and his leads to

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low return rate of the product. Like telephone, radio,

magazine and other forms of communication should

be improved.

LACK OF GOOD ROAD

Company or organization with poor road network

always loose and this may equally lead them to

liquidation. Organization also loose some material that

is good facilitated the organization to enable them well

carrying out normal operation.

LACK OF CAPITAL

No organization can set up a business without

enough capital and no business can survive without

making profits. The above study clearly indicate the

problems facing organizational structure on

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management and solution to the problems that may

be available.

1.3 PURPOSE OF THE STUDY

The major purpose of the study is to examine the

effects of the organizational structure on management

with the reference to life vegetable on Nnewi. Basically,

the study aims at:

i. Find out the meaning of organization structure

ii. To ascertain the position of the organizational

structure in life vegetable oil.

iii. To ascertain the impact of this organizational

structure has made on the workers

performance. It is hoped that the result of the

study would help to confirm or cancel the view

that the effective management depends on the

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organizational structure with particular

reference to life vegetable enterprise.

1.4 SIGNIFICANCE OF THE STUDY

There is urgent need to find out the effect of the

organizational structure on management especially at

the present time when most of our business enterprise

are fast growing.

This study is important in the sense that it will

provide vital and desirable information to business

institutions especially the vegetable oil industry.

It will help us to know the integral part of our

lives and the society we live in. the study will help us

to spread knowledge and experience.

It will help students who want to follow the same

line of action in their own research project. It will

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further help to cover conflicts that may occur in an

organization.

The study will help employee and employers to

know their positions in an organization.

1.5 RESEARCH QUESTIONS

This study sought answers to the following

research questions.

1. what is the meaning of the organizational

structure in the life vegetable oil

2. What is the position of organizational

structure in the life vegetable oil?

3. How does organization structure affects

workers performance?

1.6 SCOPE OF THE STUDY

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Any study or problem solving embarked on is

targeted on giving extracting information from a

particular environment.

This study is expected, if well handled to cover

the effect of organization structure on the

management in the life vegetable oil in Umudian in

Nnewi North Local Government Area.

1.7 DEFINITION OF TERMS

ORGANIZATION: A group of people who form

business club in order to achieve a

particular aim.

STRUCTURE: The way in which part of some

thing are connected together,

arranged and organized.

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MANAGEMENT: Act of running and controlling a

business or similar organization.

RESOURCES: Something that can be of help to

achieve aim.

ADVERTISEMENT: Creating awareness about a

particular job or services.

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CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

SOMMER (1980) defined the review of literature

as a process of findings out about previous work done

on a particular field of study. It surveys the research

previously done on the problems and evaluates what

these researchers has and that has not accomplished

is solving the problems.

2.1 DEFINITION OF THE CONCEPT ORGANIZATION

Organization is defined in a number of ways in

the study of management. It can refer to the structure

of relationships among the individuals.

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A less static approach regards organization as a

process or as an element of management concerned

with the range or growth of the structure.

Organizations are primarily complex of goals to

seek the waits which in order to survive must

accomplish the secondary tasks e.g. They must

maintain their internal system to co-ordinate the

human side of the enterprise and must adapt to and

shape the external environment.

According to Koonts and Coonel (1926)

organizations suggest the following steps.

1. Establishment of enterprise objectives

2. Formulation of derivatives

3. Identification and classification of the activities

necessary.
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4. Grouping these activities in the light of the

human and material resources available.

5. Delegating to the head of each group to the

authority.

6. Typing this grouping horizontally and vertically

through authority relations and information

system.

The above statement can be described as

organization as the act or process of organizing.

The organizational structure is the basic

framework within which the executive decision making

behaviour occurs. The quality and nature of the

decision made are influenced by the nature of the

structure.
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Organizational as an element of management is

concerned with the grouping of activities in such a

manner that enterprise objectives are attained.

The assignment of these enterprise to appropriate

department and the provision for authority, delegation

and co-ordinations are all embracing.

MOONEY AND REILEY (1939) defined

organization as an forms of every human association

for the attainment of common purpose.

They visualize it is a process of relating specific

duties of functions to a coordinated. While ALLEN

(1958) defined organization as the plan by which a

group of people pool their efforts towards designation

objectives through definition and division of the

activities, responsibilities and authority.

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According to Bernard (1968) organization is seen

as one of the system comprise within a co-operative

system. The one which is implicit in the phrase co-

operation of two or more person is called an

organization.

It is important to know that, in order to

accomplish any goals, activities must be grouped

logically and authority should be granted so that

conflicts do not occur.

2.2 DIVISIONS OF ORGANIZATION

Organization can be divided into two parts.

Formal and informal organization.

FORMAL ORGANIZATION: Is defined as the network

of communication in an enterprise. It is officially

channel through which information passes.

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A formal organization has a well defined

structure that may be describe it’s authority, power,

accountability and responsibility relationships. Formal

organization has clearly specific jobs for every

member. The hierarchy of objectives of the formal

organization is explicitly stated status, prestige, pay

rent and order pre-requisites are well ordered and

controlled, formal organizations are durable and

planned because of their emphasis on order, they are

relatively inflexible.

Membership in the formal organization is gamed

consciously at a specific time and usually openly.

Examples of formal organization include educational

institutional, local, state, federal government, medium

and large scale business concerns.

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INFORMATION ORGANIZATION: On the other hand

cannot be represented on an organizational chart.

Small group, working together form ideas and the

attitudes. The attitudes of the individual groups could

help or hinder the organizations goal to the extent that

the attitudes are subordinated to the purpose of the

enterprises. Informal organizations are loosely

organized, flexible defined and spontaneous

membership can be obtained either consciously or

unconsciously and the timing of a person’s

membership often difficult. Some examples of the

informal organizations are peer group, disc of dinner

party an accident rescue group to mention but a few

of them. When the relationships and activities of

informal organization become defined and structured,

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they can be converted to formal one’s likewise, when

he defined the structured relationship, informal

organization are not enforced or are become informal

organization.

ALLEN (1958) defined the formal organization as

a system of well defined job bearing a definite

measures of authority, responsibility and

accountability. The whole consciously designed to

enable people of the enterprise to work most effectively

together accomplishing their objectives. The formal

organization is characterized by being well defined

bound by delegation and reliably stable.

ALLEN (1958) sees informal organization as the

haphazard groups, clique and random association

that take place and their member do not have definite

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goals or rule but there is always in term to the root of

opinions attitude inclinations and feeling that are

common their members.

According to Bernard (1968) the vitality of

organization has in the willingness the individuals to

the contribute forces to the co-operative system.

This willingness required the belief that the

purpose can be carried out, a faith that diminishes to

the available to point as it not infact in process of

being attained. Hence when effectiveness cease the

willingness to contribute disappears.

Since the life of organizations depends upon the

organizations efficiency, we can say that organization

depend on the motive of individuals and inducement

with which the organization can satisfy the individual.

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For an objective purpose to motivate and maintain the

co-operative action of the contributions i.e. must be

one that is beloved by the contributors to determine

the purpose of the organization.

So it becomes an essential duty of the executive

to calculate this belief in the real existence of such

common purpose in the contributors.

Organizational efficiency which is another

prerequisite for organizational structure survival is

the organizational ability to satisfy the expectations of

the devout great alternation and sometimes great

expense of the money to non – economic inducement

because they are indispensable to fundamental

efficiency and effectiveness in many cases.

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Formal organization single or complex is always

impersonal system. We find a purpose, the co-

ordinating and unifying principle. We find them

necessary for personal willingness and effectiveness

and efficiency maintaining the integrity of purpose and

the continuity of the reconsidered contributions.

According to SISK (1973) organization is the

arranging of the part of the organization. These parts

that the administrator organizes are work, people and

systems.

EZEOCHA (1989) stated that organization arise

when any group of people come together to strive

towards a common purpose.

Management handbook defined organization as

the mean’s by which all groups of enterprises are

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given socially acceptable purpose and made capable of

efficient operation a school is an organization whose

main objective include the promotion of knowledge

and the development of certain attitude among it’s

members.

2.3 NATURE AND SCOPE OF MANAGEMENT

Management is as old as humanity, during the

prehistoric era when man was purely nomadic and

lived mainly from hunting and scavenging, he had to

manage the limited resources he had. When man

settled life, aggregation started and there was the need

to plan mobilize and manage people for common

interest and service.

The term management is used in different ways.

First, it is used in reference to co-operate leadership

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and secondly as an activity broadly speaking

management involves activities engaged in and which

are intended to allocate scarce resources towards

numerous insatiable ends. In reference to co-operate

leadership, management is used to connot a body of

people who assume a joint responsibilities for

formulating, interpreting and implementing the broad

polices of an organization. Such organization might to

be a private business concern as an educational

institution, a public co-operation or charitable homes.

Thus, we have school management committee the

management of Nigeria air ways, the management of

Ekenedilichukwu motors Ltd etc. In thus sense,

management becomes synonymous with caretaker,

directors overseers, managers, who collectively

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constitute a body separate and distinct from the

owners of the organization.

As an activity, the term management refers to the

act, process or manner of directing, conducting or

carrying on the affairs and operations of the business

organization. This is the popular concept of

management, it comprises a set of inter-related and

inter-dependent functions. It sees as management as

a method a skill, an art and a process of getting things

done. It also sees such method and process as capable

of being identified and analyzed, evaluated, studied

and acquired through learning. In this case, people

manage something and since everybody manages

something management can be viewed as an all

embracing context.
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Definition of management according to Thersuf

(1977) defined management as the process of

allocating an organizations input (human and

material) through planning organizing, directing and

controlling for the purpose of producing output (goods

and services) desired by it customers so that

organizations objective are accomplished in the

process work is performed with and through

organization personnel in an ever changing business

environment. The above definition includes the

essential feature of some school of management

thought. First it sees management as an act of

organization design which is the process of

determining the appropriate organization structure.

This is the rational system that thinking the approach

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about an organization. It also classified management

activities into those of the planning, organizing, co-

ordinating and controlling the management as

decision making, getting thing done through working

with people and using scare resources. This should

that the quantitative approach and behavioural school

of thought.

The important of management cannot be over

emphasized modern society has developed through the

creation of specialized institution or organizations

which provide the goods and services to their desires.

This institutions are guided and directed by the

decision of one or more person called managers.

Management therefore contribute to the separation of

power from the authority by allowing these specialized

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skills to management the affair of owner who may not

be talented enough and may not have the managerial

skills. These manager thus allocated the scarce

resources to alternative and competing ends. By so

doing the management thus contributes to the

division of labour and creation of standard role.

Management helps in co-ordinating the means

ends relationship. It makes provision for jobs and

services and coordinates and transforms the human,

physical and material resources into tangible

products.

2.4 THE CONCEPT OF ORGANIZATIONAL STRUCTURE

Organization structure is the arrangement of the

organization into units and management positions

between which are defined the relationships involving

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the exercise of authority and communication of the

instructions and information. It is the organizational

structure that precedes the role assignment in other

words; it is structure that determines the number of

the management positions. Then the next thing is

filling in these position with right caliber of personnel

(role assignment) most organizations have the vertical

and pyramidal structure.

According to Ezeocha (1985) the pyramidal

structure of the organization as an geometric figures,

two ruling dimension governs; the horizontal and

vertical. The horizontal dimension represent at each

level in the hierarchy, the span of authority. The

vertical dimension represent in contrast the line

command is measured by the number of

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“communication centers” through which the directive

of the chief executive pass is being transmitted to the

working level at the best of pyramid.

According to Markwebel (1920) as the firm

expands more specialists and managers are employed.

The organization becomes more complex as the

management level are more numerous and therefore

need to be more closely defined this tend to lead to

appointment becoming less personal.

Detailed rules governing all aspects are

departments. Organizations theory aims at the

developing framework model and prepositions about

organizational variables including functions,

structure, decisions, processes, behaviour,

relationships and linkages with environmental factors

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of comparative recent origins, it is not an extension of

order theories of management and human relations

but a synthesis of behavioural disciplines such as

psychology and sociology.

KOONTZ AND DONNEL (1976) stated that

organization theory has not yet reached a maturity

where it can explain much of the organizational

phenomena. It still faces considerable problems in

integrating the functional and specialized aspects of

administration.

An organization develops structure to carry out

it’s functions otherwise it would have no systematic

pattern of activities commonly called operations are

also structured particularly by the technology and the

work flow. Both the external activities and internal

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activities have to be integrated and this case of

managerial structure is developed for this purpose

structure is also necessary to allocate rewards, so that

members are committed to accomplish the task of the

organization.

An organization inevitably become bureaucratic

as it grove in complexity. The role of one man becomes

impossible in such a large organizations, senior and

middle managers are required to exercise discretion on

certain jobs. And for the effective decision to be made,

it becomes imperative to the employ manager on long

term basis.

Again if the management does not become

partially bureaucratic, in a complex organizations

unlikely to survive in a comparative environment.

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According to Simon (1982) a modern approach is

to find out new organizations work in practice and

then try and generalize about the nature of

organization. He went to say that there are four types

of organizational structure, namely

1. Straight line

2. line and staff

3. functional and committee

Furthermore, he pointed out that terminology has

come to mean the same as line and staff in some

areas.

Modern scholars are critical of formal

organization structure and behave it creates a feeling

of dependency on party of subordinates.

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BROWN (1982) Argues for relating the pyramids

or hierarchical structure of the organization because

some persons are better than others at making

decision and as the work becomes more complex there

are fewer persons able to deal to deal with more

involved problems.

Their features are noted by Brown

i. Veto appointment of subordinate

ii. Assess their work

iii. Transfer them

BROWN (1977) advocated a representative

system of manager and shop floor worker’s in the form

of workers council for each area. These councils must

unanimously agree to the matter relating to duties

entitlement of members of company. No action is

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therefore taken, if one person disagrees. The structure

aim is to reduce the conflicts. There is also criticism of

this approach to management and although the

company’s procedures and record of industrial action

in good, this is no indication that this type of

organization could be used with similar success else

where.

According to Ugbo and Okenwa (2003;100 ) An

organizational structure is the organizations official

arrangement of roles authority relationship and

communication pattern.

Organizational structure according to Stoner

(1978) is the framework that holds the various

department individual positions and their relationship

together, for order and logical arrangement. This

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organizational structure is often expressed in a chart

form. This chart portrays the organizational structure

is a diagrammatic forms. The structure of an

organization is influenced by many factor which

include the size and nature of the organization, its

objectives and function, the complexity of the

department, the length of the time the organization

laws been in existence, its performance or otherwise,

the flow of the business throughout the year, the

geographical location of the various units of the

organization, the autonomy given to divisions/

department/units of the organization and the extent of

mechanization/automation. (Denyer and Shaw, 1990).

Having the above factor in mind the managers have to

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ask themselves a number of basis questions before

designing an appropriate structure.

 What is the best basis for dividing

up work? By specialist function, product,

geography e.t.c.

 How much specialization should be

encouraged? How closely should individuals task

be defined in relation to other task?

 How much standardization of

procedure should be encouraged?

 How much discretion (freedom to

act) should be permitted to individuals?

 What is the best way to achieve co-

ordination and integration across the

specialisms? (Cole, 2002).

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There are no simple answers to these questions

management has to exercise their judgment to the

configuration for their particular situation. This is

because the organization structure, which operates

successfully in a medium sized business in a group of

companies with branches located in various places

around the country. One thing is certain; there is no

idea organization structure. A good manager should

know what is implied by good organization, he should

always seek to evolve the best that is the most suited

to the work his office. His task is to develop an

organization structure that will facilitate the flow of

work which will provide the information service

required by management, which will give a whole and

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this make the most effective contribution possible to

the fulfillment of co-operate objectives.

2.5 TYPES OF ORGANIZATIONAL STRUCTURE

There are four types of organization structure vize

line and staff, functional and committee organization.

Line organization this is type of organization consist of

direct vertical relationships connecting the positions of

the relationship those above and below. These line

relationships are the channels through which

responsibilities and authority flows from the top

management to the lowest subordinate, thus

responsibility is greatest at the top and reduced at

each successive level down the organization.

Line structure forms a basis framework for the

whole organization. The other types of structure are

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modification of it, and must rely on it for authority

action. McFarland (1979) showed the line of the

authority as basic in organization and representing

the ultimate authority to command, direct, at, decide,

approve or disapprove, direct or indirectly the

activities of an organization or unit of organizations. It

directs others and requires them to conform to

decision. But this right is not absolute, for all

authority must operate within the limits of the

delegation and must carryout the appropriate

responsibility.

Line organization has the great advantage of

being simple direct and makes for speed in decision

making, there is not doubt about fixing responsibility

for work at different levels and it gives clear indication

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of lines of communication since department heads are

solely responsible of their particular sections of

concern there may be a lack of co-ordination of the

work of the various department unless an overall

planning has been made. It may also tend to breed

empire building.

Line and staff structure – this type of structure is

used when time need experts advice or detailed

information to be able to make appropriate decision

that will help to achieve organization goals. Line and

staff is the modification of the line structure. The line

structure consists of department headed by experts,

who assist with the line e.g. legal department,

personnel management authority.

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However, the authority is limited by the absence

of the right to command or direct because its main

activities consist of advertising or services which cut

across several units of the business. Its most serious

fault is that of causing confusion for want precise

definition of duties.

Functional structure: functional structure is

common in large organization because of the

complexities of organizational life. Here work is

arranged according to the types of activities with

experts placed in charge of the different aspects of

concern to ensure that their activities are dealt with

uniformly throughout the organization. This type of

organization makes use of specialization and makes

coordination better.
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A person’s special skills are available to the entire

organization are not restricted by arbitrary

departmental boundaries.

An example is a research department, which

could require other sections of the organization to

follow it’s orders. The main difference between line

and staff and functional structure is that the latter

confers upon it’s holders the right to command in

matter pertaining to that function and across

departmental lines (Hutchinson, 1971).

The main disadvantages of these structure is that

it make for multiple responsibilities for multiple

supervisors which can create conflict in boss

subordinate relationship. Employees may find, there

 54

are “too many bosses”. It can also add to overheads

with no corresponding contribution to efficiency.

Committee organization, it is a group of people

drawn from different department to bring together

their experience. Skills resources and team work to

discuss and solve some organizational problems.

TREWATHA (1975) defined committee as a group

of organizational members change with responsibility

for solve a specific problem or accomplishing specific

task.

In the same vein, Filley and House (1969) said, it

is a special type of meetings, characterized by a

limited membership, a specific task or goal, a

designated leader and an implicit or explicit plan of

action, there are two type of committee in the

 55

organization temporary or adhoc committee with

specific assignment, examples are works committee,

budget committee the other is the standing or

permanent committee and it is a permanent feature of

the top level of an organization. Examples are boards

of directors, etc the use of committee is a well known

technique for co-ordination in organization. Ndukwe U

and Chuke (2003)

2.6 SUMMARY OF LITERATURE REVIEW

Organization can never be in existence with human

being it will be human being that will form any

organization whether formal and informal but the

formal is well structured their function well defined

decision making has its ways coming from the

managers of each units to their subordinate while the

 56

informal are just associate bodies that are loosely

organization they are not well structured and the goals

and functions are not well structured and the goals

and functions are not well defined like the formal

organization.

But all these are just a achieve one aim or the

other. But the way organization is structured has a lot

to do with the effectiveness and efficiency in that

organization. In other words, it is the structure of an

organization that determines the number of

management positions.
 57

CHAPTER THREE

3.0 METHODOLOGY

The methodology for this report broken into

design of the study, Area of the study ,population,

sample size and sampling techniques description of

the instrument , method of data analysis and

administration of questionnaire

3.1 DESIGN OF STUDY

This type of research design used is survey

method of obtaining data on effect of organizational

structure on effective management base on the

familiar with the management .A questionnaire was

constructed to elicit answers to all aspect of the

problem being studied and was administered on the

respondent by their hand

 58

3.2 AREA OF THE STUDY

The coverage of this product is only in Umudim

in Nnewi local government Area of Anambra state.

This basically a study designed to investigate the effect

of organizational structure on effective management.

3.3 POPULATION OF THE STUDY

The target population in vegetable oil company in

Umudim in Nnewi Local Government Area was made

up of 200 workers or staff of life vegetable oil

company.

3.4 SAMPLE OF THE STUDY

These sample of the study consists of 120 (one

hundred and twenty) out of 200 (two hundred) staff of

 59

life vegetable oil Umudim Nnewi. These sample was

drawn using systematic random sampling.

3.5 INSTRUMENT FOR DATA COLLECTION

The instrument used for data collection for this

work was questionnaire. The questionnaire was the

main instrument used for the study. The

questionnaire was designed and made up of two

section (A and B). Section A was designed to collect

information from workers while section B was

designed to gather information from managers.

The workers questionnaire has six items while

that of managers has (14) items. The first part of the

questionnaires were meant to obtain information

about the personal data of the respondents. The other

 60

part required of the effect of organizational structure

on management.

3.6 VALIDATION OF INSTRUMENT

The instrument was content validated by the

supervisor. The supervisor critically examined in the

questionnaire based on his recommendation

necessary reviews were carried out on the instrument.

3.7 DISTRIBUTION AND RETRIEVAL OF THE

INSTRUMENT

The questionnaire was administered personally by the

researcher and by some friends who are workers in

the life vegetable oil. The researcher personally went

back to the life vegetable oil company Nnewi, and

collected the questionnaire. Out of 120 copies

 61

distributed 90 copies were retrieved, 30 copies were

not property filled.

3.8 METHODOLOGY OF DATA ANALYSIS

The data collected from the research was

presented and analyzed in chapter four (4).

The total positive and total negative respondents

were converted into simple percentage.

Thus: No of Responses X 100

Population 1
 62

CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

In this chapter data collected for the purpose of

answering research question using table of

frequencies and percentages. The findings, were

presented according for research question.

Question 1

Does organizational structure affect working performance?

Responses No of Respondents Percentage

Yes 40 44.5%
No 35 38.9%
I don’t known 15 16.7%
Total 90 100%

On the issue, whether organizational structure

can affect the worker performance 40 respondents out

of 90 representing 44.5% respond positively by saying

 63

yes, 35 respondents representing 38.9% responded

negatively by saying No while 15 respondents

representing 16.7% opined that they don’t known.

Question 2

Do you think that power and authority flow from top

to down in an organization?

Table 2

Responses No of Respondents Percentage

Yes 60 66.7%
No 20 22.2%
I don’t known 10 11.1%
Total 90 100%

Reacting to whether power and authority flow

from top to down in an organization 60 respondents

out of 90 representing 66.7% responded positively by

saying Yes. 20 respondents representing 22.2%

 64

responded negatively by saying No, while 15

respondents say they don’t know.

Question 3

Could it be said that in an organizational

structure there is delay in decision making and

decision implementation.

Table 3

Responses No of Respondents Percentage

Yes 70 77.8%
No 20 22.2%
I don’t known - -
Total 90 100%
On the possibility of delay in decision making and

decision implementation in an organizational

structure, 70 out of 90 respondents representing

77.8% during the interview accepted the view 20

respondents 22.2% responded negatively by saying

No.
 65

Question 4

Do organizational structures allow junior workers to

participate in decision making?

Table 4

Responses No of Respondents Percentage

Yes 35 38.9%
No 55 61.1%
I don’t known - -
Total 90 100%

On whether junior workers are allowed to

participate decision making, 35 out of 90 respondents

representing 38.9% agreed that junior workers are

allowed to participate in organizational decision

making where as 55 representing 61.1% opined that

junior workers are not allowed to participate in

 66

organizational decision making as it remains the

prime instrument of an organization.

Question 5

Does organization have formal rule that must be obeyed.

Table 5

Responses No of Respondents Percentage

Yes 80 88.9%
No - -
I don’t known 10 11.1%
Total 90 100%

On the issue, whether organization has formal

rule that must be obeyed, 80 out of 90 respondents

representing 88.9% were affair while 10 representing

11.1% did not affirm to it.

Question 6

Could it be said that rigidity to structure in

organization encourages inefficiency and ineffectiveness ?

 67

Table 6

Responses No of Respondents Percentage

Yes 20 22.2%
No 70 77.8%
I don’t known - -
Total 90 100%

Reacting whether rigidity to structure in

organization encourages inefficiency and ineffectiveness

20 out of 90 respondents representing 22.2%

indicated their acceptance by the option of Yes, 20

respondents representing 77.8% rejected it by saying No.

Question 7

In your own view do you think that the life vegetable

oil obeys all features of any other type of organization?

Table 7

Responses No of Respondents Percentage

Yes 80 88.9%
 68

No 5 5.6%
I don’t known 5 5.6%
Total 90 100%

Reacting to whether life vegetable oil obeys all

features of any other type of organization, 80 out of 90

responses representing 88.9% indicated their

acceptance by the option of Yes, 5 representing 5.6%

during the exercise rejected it by saying no to their

assertion while 5 representing 5.6% opined that they

don’t know.

Question 8

Does organization use money and material?

Table 8

Responses No of Respondents Percentage

Yes 80 88.9%
No - -
I don’t known 10 11.1%
Total 90 100%
 69

Concerning whether organization use money and

material, 80 out of 90 respondents representing 88.9%

openly recognized the argument positively where as 10

representing 11.1% opined that they don’t know.

Question 9

Does delay in decision making affect the effectiveness

or performance of workers in the organization?

Table 9

Responses No of Respondents Percentage

Yes 75 83.3%
No 15 16.7%
I don’t known - -
Total 90 100%

Reacting to whether delay in decision making

affect the effectiveness or performance of workers in

the organization, 75 out of 90 respondents

representing 83.3% agreed to it by saying yes while 15

 70

representing 16.7% did not agree to it and they said

no.

Question 10

Does the management make organization decision?

Table 10

Responses No of Respondents Percentage

Yes 80 88.9%
No - -
I don’t known 10 11.1%
Total 90 100%

Concerning whether the management make

organizational decision 80 out of 90 respondent

representing 88.9% openly recognized the argument

positively where as 10 representing 11.1% opined that

they don’t know.

4.1 FINDINGS
 71

1. It has been found out that organizational

structure can affect the workers performance.

2. It has been found out that power and authority

flow from top to bottom.

3. It has been found out that in an organizational

structure there is delay in decision making and

decision implementation.

4. The researcher has discovered that organizational

structure does not allow junior staff to take part

in decision making.

5. It has been discovered that organization has

formal that must be obeyed.

6. It has been found out that rigidity to structure in

organization encourages inefficiency and

ineffectiveness.

7. It has been discovered that the life vegetable oil

obeys all other features of any other organization.

 72

8. It has been found out that organization use

money and material.

9. The researcher has discovered that delay in

decision making affect the effectiveness or

performance of workers in the organization.

10. It has also been discovered that management

make organizational decision.

 73

CHAPTER FIVE

5.0 SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF FINDINGS

The chapter aims at summarizing the research

findings drawing conclusion about the finding and

making useful recommendation.

Majority agree that communication and

authority flow from top to bottom in an organization.

This means that the manager is a nerve center of his

organization. Therefore, to avoid any power tussle in

an organization. It is the duty of the manager to

bring information and transmitting information to

his subordinate.
 74

This research revealed that majority agree that

life vegetable oil obeys all the feature of any other

type of organization and also organizational

structure does not allow the junior workers to

participate in decision making. here it mean that all

decision must be carried out by organizational

structure only to avoid routine problems.

It is well clear and well appreciated by great

number of person that rigidity to structure in

organization encourages inefficiency and ineffective.

This simply means that for any organization to be

efficient and effective, they should be proficient and

knowledgeable in the tasks they are grant to be

carried out. If the organizations are not

knowledgeable enough to carry out their functions,

 75

it means that it will lead to liquidation or minding

up on organization due to poor productivity.

5.2 CONCLUSION

In conclusion, for every company to be effective

there must be an organizational structure. Each

structure should be doing the right time in order to

attain good position in the company, organizations

are primarily goal seeking units which in order to

survive must accomplish secondary task e.g. they

must maintain their internal system to co-ordinate

the human side of enterprises and must adapt to

and shape external environment.

This study has been a worthwhile exercise in

that it has helped in assessing management and

 76

recommending solution to the problems. It has also

helped for enlargement of abilities which usually

leads to specialization and exchange and also

providing the researcher what management is like in

practice before going into the field. Organizations are

also forced to derive social satisfaction.

Finally, it is the researcher future hope that if

the suggestions is made, this study are properly put

into practice, the company will certainly improve on

its management operations.

5.3 RECOMMENDATIONS

Based on the above findings, the following

recommendations are made;

 77

Information is very essential to every

organization, confidential, information about the

organization should be kept secret and that the

information is being handled by the employee

responsible for it.

Raw materials and other office materials must

be regularly available. Efforts should be made to

avoid using absolute materials or equipments and

where they are being used, they should be replaced.

All employers of labour should ensure that their staff

undergo training and development periodically. This

will improve workers horizon, proficiency and

knowledge.

Manager should live exemplary live by avoiding

corruption, abuse of power, official in discipline,

 78

favouritism or nepotism and making sure that the

organizations rule and regulations enforce. Ensuring

that other duties and responsibilities necessary for

the organizations continued existence are carried

out to the best of the workers abilities and in the

interest of the organization. The strength and

weaknesses of every worker should be ascertained

before job sharing. This is necessary to avoid

duplication of efforts and costs that may be incurred

as a result of mistakes committed be incapable sub-

ordinate.

Finally, recommendations were suggested that

with effect improvement if the recommendations are

fully implemented by all participants of business,

 79

sooner or later all these problems will be a thin of

the past.

5.4 LIMITATION OF THE STUDY

The following limitations were inherent in the

study;

In the cause of carrying out this study I was

faced with some difficulties.

TIME: This is one of the limitations in the study

of this work. In the first place as this research work

was carried out at school level I have to apportion

my time so that the demand for other course could

be met even the time given for the research was little

to go beyond this level or to expand more on this

project work.
 80

Non-availability of research materials – there was no

sufficient materials in the library to bring up facts,

that will be useful in the course of the study. Again

the library accommodation is small that it contains

only few students.

COST: The cost of transportation was one of the

impediment it was not out of place, transporting

myself from one location to another in a bid to

collect materials for the project was one of the

hindrances and limitations.

RESPONDENT: The respondents did not help

matters at the initial stage, my respondents were

afraid to fill the questionnaire items. It becomes a

difficult task for me to convince them with enough

reasons why it is necessary for them to fill in the

 81

gaps. Because of financial problems encountered

during this research work, I was unable to go

beyond the sample population in which I found

myself, and I improve other researchers coming after

me to take it up from where I stopped because it is a

continuous process.

5.5 SUGGESTION FOR FURTHER RESEARCH

The following suggestions were made for further

research:

1. The study can be repeated in other

organization.

2. Organization personnel should be motivated

and equipped in order to put in their best for

performance in the organizations.

 82

3. Training workers should be considered as

cordial means of increasing the efficiency and

productivity of the organizational structure.

 83

REFERENCES

ALLN AND UNIWINS (1973)

Management and Organization.

BEIHSON R.J. AND PETERS (1972) System Behaviour,

The open University Press, Harper and Row.

BERNARD C.I. (1968) Functions of the Executive,

Mass Harvard University Press.

BRENCH B.F.L. (1965) Organization the framework of

management: 2nd Edition, London; Longman
Publishers.

BROWN W.B.O. (1962) Exploration in management,

London, Heinemann Publishers.

NWADUKWE U.C. AND CHUKE L.U. (2003) Office

Administration and management. 1st Edition:
Nigeria, Christian Publishers.

OKENWA C.P. and UGBO, I.E (2003) Management

theory and practice. 2nd Edition: Nigeria,
Fountain publishers.

UKEFE (1992) Educational Administration: Nigeria

Fourth dimension publishing Co. Ltd.
 84

APPENDIX

Department of Public Administration

Federal Polytechnic, Oko
P.M.B. 21, Oko Aguata L.G.A.,
Anambra State.

Dear Respondent,
I am ND final year student of Public Administration
in Federal Polytechnic, Oko, in Anambra State.
My project work is on, “The Effects of
Organizational Structure on Management in Nigeria
Organization.
It is a requirement for the National Diploma in
the Federal Polytechnic Oko.
Please complete the questionnaire below will be
mark X in the appropriate box.
Thanks for your co-operation which you put into
this project.
Yours Faithfully

Patrick Monday
(Researcher)
 85

QUESTIONNAIRE

INSTRUCTIONS:

Please mark “X” inside the space of the response that

best to be described your feeling.

Write in the areas provided.

SECTION A

1. Sex

a. Male( )

b. Female ( )

2. Age

a. Below 20 ( )

b. 21 – 25 ( )

c. 26 – 30 ( )

3. Marital Status

a. Single ( ) b. Married ( )
 86

4. Qualification

a. Standard Six ( )

b. ND or NC ( )

c. First degree or masters ( )

5. What is your status in organization?

a. Manager ( )

b. Technician ( )

c. Clerical worker ( )

6. How old are you in the organization?

a. Less than 5 year ( )

b. 5 – 10 ( )

c. 11 – 15 ( )

SECTION B

7. Does organization is made up of human being?

Yes ( ) No ( )
 87

8. Does organization use money/materials?

Yes ( ) No ( )

9. Did organization have objective?

Yes ( ) No ( )

10. How does the manager perform, is it directing

controlling, organizing or planning function?

Yes ( ) No ( )

11. Does the management make organization?

Yes ( ) No ( )

12. Communication flow from top to bottom in an

organization?

Yes ( ) No ( )

13. Power and authority flow from the top to the

bottom in an organization?

Yes ( ) No ( )
 88

14. Does organization have formal rules and

regulation which must be obeyed?

Yes ( ) No ( )

15. The life vegetable oil obeys all features of any

other type of organization?

Yes ( ) No ( )

16. Did organizational structure delays decision

making and decision implementation?

Yes ( ) No ( )

17. Organizational structure does not allow the

junior workers to participate in decision making?

Yes ( ) No ( )

18. Rigidity to structure in organization

encourages inefficiency and ineffectiveness?

Yes ( ) No ( )
 89

19. Did organization is hierarchical in nature?

Yes ( ) No ( )

20. Please make any comment that you feel will be

useful to this study _____________________________

________________________________________________

________________________________________________
90
91