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LETTER OF CERTIFICATION
This is to certify that Abishu Wayesa has carried out his study under my supervision on the topic
of: The effects of organizational structure on Employee performance’’ a case of Ethiopian
catholic church social and development commission office of harar. This work is original in its
nature and it is suitable for Submission in partial fulfillment of the requirement for the award of
Degree Master of Business Administration in Management.
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ACKNOWLEDGMENT
First of all I would like to thank the Almighty God, Who gave me the commitment and stamina
to pass various obstacles and come up to the accomplishment of this thesis.
I would like to express my deepest appreciation to my advisor, Dr. mulegeta girma, for his
supervision, guidance and excellent advice and also for spending precious time for improving the
quality of this research.
I would like to express my appreciation to ECC-SDCOH staffs that contributed directly or
indirectly to this thesis and provided the necessary materials and support for realization of this
thesis. Especial thanks are forwarded to ECC-SDCOH (HCS) professional’s employees who
sacrificed their time in filling the questionnaires.
The study would have not been possible without the lovely backing and help I received from my
friend by giving me time, relax and moral of appreciation to accomplish successfully. To her I
say thank you.
Finally, I want to thank my brother Bedasa tolera, family and colleagues who helped me in
sharing ideas and took part in this research paper one way or another. Thank you who are eager
to see my success. They have been the greatest source of support throughout my education
Acronyms and Abbreviations
OS Organization structure
NGO Non-government
LH Layer of Hierarchy
PC pattern of communication
SU Supervision
FO nature of formalization
ε error term
Wc working condition
WS work specialization
CA centralization of authority
LIST OF TABLES AND FIGURE
One of the major elements influencing how well employees perform at their jobs in an
organization is the organizational structure. This can have an impact on how well a work is done
by controlling the organization's personnel. Organizational structure manages staff division
arrangements as well as the formal authority structures that coordinate and control work flow,
communication, and coordination. The effectiveness of an organization's structure can help its
employees perform better on the job. On the basis of the theory, it is believed that organizational
structure affects how well employees perform their jobs (Setiawan, B., Putrawan, I, Murni, S &
Ghozali, I, 2016).
Organizational structure and its factors are frequently also effective on employees' performance
on the job. This structure should be appropriate for the role of the organization as a whole; in
other words, structure is the obvious mirror image of rules, regulations, procedures, standards,
decision-making positions, the use of technology and communications, the division of sections
and jobs and the merging of them, and the hierarchy of authorities.it is commonly argued that
organizational graph may be a summary of the actual organizational structure since it is a
relatively straightforward and concrete idea of structure and may be a visual sign of all
organizational activities, communicational methods, and procedures (Hatami S. Sobhani Y. and
Biramie J., 2013).
In the global business environment, best practices are expected of organizations in order to
compete favorably and consider key players in the international market. Organizations that want
to play along in the globalize market may have to structure their organizational design towards
decentralization and standardization system of control that will focus on operational excellence,
global competition, innovation and synergy among skillful employees (Adeoye K, 2018)
In Africa, organizational structure in governments have been viewed as the way responsibility
and power are allocated inside the organization and work procedures are carried out by
organizational members (Teixeria R., 2012, ). As a developing continent, organization structures
have not effectively led to employee performance. Most of the employees fail to perform duties
as they are always absent at work, they do not adhere with the hierarchy of administration.
Therefore, such case pushes most of the organization employees performing lowerly. African
governments should put well established effective structures so as to improve the performance of
employees.
In Ethiopian, organizational structures in the local non-governments have been focusing on the
layout of departments and job roles in a local government in the context of reporting
relationships. Local non government’s structures can be drawn as a top-down flowchart, with
each connected node representing a different position in the local non-government that repo1is to
the position above it and possibly supervises the positions directly below it (Nkata, 2014).
Many organizations in Ethiopian non-government and around the world are faced with the
problem of determining if employees are satisfied with their jobs. There is need to determine if
the way organization is designed has an impact on an employee’s satisfaction level. Organization
design consists of measures that are put in place in order to get employees to pursue the goals set
by the organization’s principals (Okoro Blessing Chineme, 2017).
There are various factors that affect employee performance in Ethiopia.to investigated the
elements that determine employee performance in the Ethio Telecom zonal office (Mekonnen,
Mulatu Masresha, 2016). The findings indicated that motivation, training, and demographic
factors are factors in determining employee success. There are various factors that affect
employee performance in Ethiopia. To investigated the elements that determine employee
performance in the Ethio Telecom zonal office (Mekonnen, Mulatu Masresha, 2016). strata
which potentially the findings of the study due to the heterogeneity of employees in a zones. The
study takes this as a methodological gap
According to Hadis Alipoor, Keyvan Ahmadi, Salah Pouya, Khabat Ahmadi, Soran Mowlaie
(2017) on the effect of organizational structure on employees’ job performance in private
hospitals of Ahvaz, founded that organizational structure (structural aspects) features a
significant negative effect on job performance of employees in a private hospital of Ahvaz. That
means, as regulations and complexity in the level (vertical, horizontal, geographical), formality
and organizational concentration is more, employees’ job performance reduces
Studied the impact of organizational structure, leadership and trust on employees’ performance a
sample of 80 employees was drawn from Ternama University, Indonesia. The results indicated
an insignificant relationship between the organizational structure and employees’ performance;
the coefficient value was higher than 5% (−0.16). This meant that the organizational structure
had no direct impact on employee performance, a conclusion in conflict with the results of many
other studies (Setiawan, B., Putrawan, I, Murni, S & Ghozali, I, 2016).
In a research carried out by (Abdulrahaman, 2019), the study is to examine the relationship
between organizational structure and academic staff performance in Yusuf Maitama Sule
University. The study finding indicated that, nature of hierarchical layer and organizational
boundary significantly influences academic staff performance. The result further shows that
nature of formalization is not significantly correlated with employee performance.
(Hadis Alipoor,Keyvan Ahmadi,, Salah Pouya,Khabat Ahmadi,Soran Mowlaie, 2017) This study aims to
determine the effect of organizational structure (structural aspects) on employees’ job
performance of a private hospital in Ahvaz. This research is applied in terms of goal, and based
on the manner of collecting data; it is descriptive of correlation-survey type. The results indicate
that organizational structure (structural aspects) has a significant negative effect on job
performance of employees in a private hospital of Ahvaz. That means, as regulations and
complexity in the level (vertical, horizontal, geographical), formality and organizational
concentration is more, employees’ job performance reduces.
(Afodigbueokwu, Hillary E.Okoye, Nonso J. Nosike, Chukwunonso J) the study determines the
organizational structure and employee performance of selected banks in Anambra state, Nigeria.
Survey research design was employed for the study. The study revealed that nature of
formalization and layers in the organizational hierarchy has significant effects on the employee’s
performance of commercial banks in Anambra state,
In the above mentioned works though they were attempt to contribute to the area of organization
structure on employees performance but their limitation in-terms of geographical gap ( i.e. none
of them extend to the eastern parts of country’s‟ employee of organizational environment)
conceptual also limited to only few determinants; some limited to salary and opportunities for
promotion, other of the study limited to practices formalization, , Layer of hierarchy,
specialization, centralization, and technology to determining of employees performance
To sum up, to the best of the researcher knowledge, no previous researches have been directly
addressed related with the effect of organization structure employee performance in the non-
government organization at country level in general. Therefore, the researcher-initiated or
triggered to investigate the effect of organization n employee performance for attempting to
partially fill this empirical research gap in Ethiopian context at non- government sector
particularly ECC-SDCOH (HCS) Branches through incorporating the seven dimensions of OS
such as such as, nature of formalization, working environment, Layer of hierarchy, work
specialization, centralization of authority, pattern of communication, Supervision into the
research design.
In view of the above research gaps this study is conducted to assess the effect of organizational
structure on employee performance in ECC-SDCOH The above research problems lead to the
following research questions
This research Study is beneficial not only to the workers of the ECC-SDCOOH (HCS) but also
the non-government sector as a whole and also this study were being useful at individual level,
organizational level and national level. At the individual level, the workers of the organization
was being informed as to the incentive programmes’ available to them and how best to utilize
them for personal development and improved performance. At the organizational level, it will
help the non-government to change or review their employee motivational polices and strategies
in vague which will inevitably cause in staff productivity which will also lead to growth and
eventually development.
It helps to provide insights to support future research regarding strategic guidance for
organizations structure design programs. This study would help project a unified message and
image of the non-government (ECC-SDCOOH) that are being made use of in this study and help
to keep a strong brand image.
Covered the extent of the effect of between organizational structures on employee performance.
Owing to the fact that researchers in Ethiopia generally are usually faced with a number of
personal and environmental challenges; the researcher is no exception as the researcher may
experience time limitation and in-cooperating attitude of some respondents. However, the survey
is subject to bias and prejudice of the respondent, hence hundred percepts accuracy cannot be
assured.
Time scope
The period between 2015 and 2022 will be considered for this study; this being the period during
which the ECC-SDCOH (HCS) faced major challenges in terms of performance
Geographical scope
The study population will be drawn from the ECC-SDCOOH (HCS) Furthermore; the study is
mainly focus on branches which are located on the district of DD HQ office. The sample
respondents was employees from these selected branches in DD HQ district to gather relevant
information for the study on the effect of organization structure on employee performance in the
ECC-SDCOOH (HCS).
Communication is vital for organization members to accept the setup goals and correctly
interpret them into actions
Employee job performance: - The ability to accomplish the task at a specific time, willingness
to do other jobs and cooperation with others to do the job.
Formalization: -is the extent to which an organization’s policies, procedures, job descriptions,
and rules are written and explicitly articulated.
Organization structure is the structural framework for carrying out the functions of planning,
decision-making, controlling, communication, motivation, etc. how individual and team work
within an organization is coordinated.
Supervision is the element of administrative process, which is concerned with effort to guide the
day to day activities of the work group by stimulating direction and coordinating the workers and
their effort cultivating good working.
CHAPTER TWO Review of related literature
2.1 Introduction
This chapter is aimed to present a review of related literature that had been done by various
researchers on the effect of organizational structure on employee performance. Therefore, this
chapter mainly focuses on the concepts of organizational structure, theories of organizational
structure, empirical studies and conceptual framework of the study.
An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization. These activities can include rules, roles, and
responsibilities. The organizational structure also determines how information flows between
levels within the organization. Organizational systems are the processes that attempt to
coordinate those divisions of work. The structure of an organization is like a skeleton: It defines
the spatial relationships and influences the power relationships among its various parts. The
skeleton alone does not do much work; it merely provides the framework within which the body
tries to organize its resources to accomplish the task (Ahmad, Taufiq & Haneef, Rifat & Riyal,
Mk & Rawat, Deepa. , 2022)
Organizational structure is the way responsibilities and power are allocated, and work procedures
are carried out among organizational members. They designate the nature and means of formal
reporting relationships as well as the groupings of individuals within the organization (Razia,
August. 2015).
structure refers to the relationships among the parts of an organized whole in regards to
organization theory, social structure specifically refers to relationships among people, positions,
and organizational units, such as departments and divisions, to which they belong, The basic
elements of organizational structure, first outlined by sociologist Max Weber, arc hierarchy of
authority, division of labor, and rules and procedures (Hatch, 1997).
Organization structure intervenes between goals and organizational accomplishments and thus
influences organizational effectiveness. It is a framework of an organization that helps in
determining individual responsibilities and task processes of delegation and the distribution of
authority. It is a tool of management for achieving plans. As plans tend to change, the
organizational structure should be responsive to change. Structures are designed to ensure that
resources are used most effectively towards accomplishing an organization’s mission. Structure
provides managers with a means of balancing two conflicting forces: the need for division of
tasks into meaningful groupings and the need to integrate such groupings to ensure
organizational efficiency and effectiveness (Dess, 2003)
organization structure defines task allocation, reporting relationships, and formal coordination
mechanisms in an organization, An organization' s structure includes the three components of
complexity, formalization, and centralization, Structural complexity refers to the extent to which
there is differentiation, or a division of labor, in an organization, A complex structure has a
greater need for communication across many departments horizontally or between many levels
vertically, The more complex an organization is, the greater the need for effective
communication, coordination, and control, (Robbins, 1990)
The level of formalization dictates the degree to which rules and procedures guide organizational
behavior. There exists a link between complexity and formalization; it has been found that, due
to the skill of specialists in highly complex organizations, high complexity generally sets the
tone for low formalization, (Robbins, 1990).
A formalized structure includes many rules and procedures that dictate how organizational
activities are to be carried out; therefore, formalization generally tends to reduce the amount of
communication in an organization due to the discouragement of innovation (Hatch, 1997).
Centralization determines where the decision making authority in the organization lies, Highly
centralized decision-making leads the senior executive to make judgments, In organizations that
are less centralized, decision-making authority trickles down to lower levels, Highly complex
organizations are generally more decentralized while organizations lower in job specialization
require a central locus of control. Decentralized organizations require more communication and
employee involvement (Robbins, 1990).
Simple structure: This type characterizes small companies, where employees’ tasks vary little
or not at all. This type of structure is usually found in new organizations or inside a specific unit
or department.
The simple structure is said to be characterized most by what it is not rather than what it is. The
simple structure is not elaborated. It has a low degree of departmentalization, wide spans of
control, authority centralized in a single person, and little formalization. The simple structure is a
“flat” organization; it usually has only two or three vertical levels, a loose body of employees,
and one individual in whom the decision-making authority is centralized
Line & Staff Structure: combines the line structure where information and approvals come
from top to bottom, with staff departments for support and specialization. Line and staff
organizational structures are more centralized.
Hybrid structure: It is a combination of two or more types of structures and is applied when the
organization cannot follow a single structure. Some companies permanently apply a hybrid
structure to gain maximum advantages or they may temporarily incorporate several structures.
Network structure: A new type used by companies that seek to replace vertical by horizontal
relationships. Organizations apply a network structure to build partnerships with other
organizations with a view to providing products and services (Thomas, 2015).
Team structure: the primary characteristics of the team structure are that it breaks down
departmental barriers and decentralizes decision making to the level of the work team. Team
structures also require employees to be generalists as well as specialists
Virtual organization: it is a small and central organization providing its main resources from
other organizations. A virtual organization is centralized in terms of structure and rarely has it
specialized units
Boundary less (No boundary) (organization: An organization that seeks to eliminate the chain
of command, have limitless spans of control, and replace departments with empowered teams.
(Rabbinz, 2012.)
2 SWOT model
A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate
the strengths, weaknesses, opportunities and threats involved in a project or in a business
venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective. The degree to which
the internal environment of the entity matches with the external environment is expressed by the
concept of strategic fit.
Strengths: characteristics of the business or project that give it an advantage over others.
Weaknesses: characteristics that place the business or project at a disadvantage relative to
others
Opportunities: elements that the project could exploit to its advantage
Threats: elements in the environment that could cause trouble for the business or project
First, the decision makers should consider whether the objective is attainable, given the SWOTs.
If the objective is not attainable a different objective must be selected and the process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful information
for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful
and find their competitive advantage.
1 The McKinsey 7S model
2 Rational model[edit]
The rational model stems from the Frederick W. Taylor's (1911) Structural Perspective. Taylor
was the father of time-and-motion studies and founded an approach he called "scientific
management."[5] It was Taylor's stance that organizations should be as mechanistic and efficient
as possible. These Scientific Management principles served a valuable purpose for the Ford
Motor Company, where the first American, mass-produced automobiles were being created.
[6]
The rational model views organizations as a mechanism that is made up of various parts that
can be modified in order to create an output in the shortest amount of time and without deviation.
The natural system model is in many ways the opposite of the rational model in that it focuses on
the activities that may negatively impact the organization and therefore aims at maintaining
equilibrium in order to meet its goals.[6] The Natural System model views organizations as an
organic organism which is holistically interconnected. The parts of the organization are not seen
as independent units but rather as a whole that can orchestrate together to prepare for inevitable
change.
4 Sociotechnical model[edit]
The sociotechnical model, also known as Sociotechnical Systems (STS), is an approach to
complex organizational work design that recognizes the interaction between people and
technology in workplaces. The aim of sociotechnical models is to optimize both social and
technological sub-systems of work. The term also refers to the interaction between society's
complex infrastructures and human behavior. This model identifies the environment as a key
factor that interacts with the organization.
5 Cognitive model[edit]
Behavior, cognitive, and other personal factors as well as environmental events, operate as
interacting determinants that influence each other bidirectionally. [7] Personal goals of the
managers and staff are seen as assisting in the effort toward organizational objective attainment.
Decision-making processes are focused on and specialization is deemed as important to the flow
of information.[6
6 Meta models[edit]
Attempts have also been made to put elements of the above models into a kind of meta-model.
Based on a theorized blindness of a single perspective, Lee Bolman and Terrence Deal have
designed a model that splits analysis into four distinct paradigms. These 'frames' are to be used as
a pluralistic model, and therefore allow analysts and leaders to change their thinking by re-
framing understanding and points of reference. Bolman and Deal postulate that re-framing is a
powerful way to think about situations in multiple ways, which is why taking a meta-model
approach enables the development of alternative diagnoses and strategies.[8]
3. Political frame This frame posits that organisations are cutthroat jungles, where only the
strongest survive. Problems come from poor power coalitions or overly centralized
power.
4. Symbolic frame This frame supposes that organisations are deeply symbolic and
successful business is about the representation genuine meaning. Problems occur when
actors fail to play their parts.
2.2 Factors of Organizational Structure
Layers of hierarchy, nature of formalization, centralization of authority, supervision, pattern of
communication are the main dimensions of organizational structure that are discussed in this
study.
Formalization refers to how uniformly jobs are performed. The degree to which employees are
subjected to rules and procedures that not only stifle but also discourage creativity, independent
work, and learning activity is referred to as formalization .When efficiency declines it promotes
learning, independent thought, and creative work, organizes work units around key processes to
improve customer value (shabbir, 2016).
Formalizing a significant dimension of the organizational structure, and is associated with the
complexity of the organization. It refers to the degree of prescription, the level of standards and
measures of employee behavior in accordance with the prescribed rules and procedures. In
organizations where there is a high degree of formalization, prescribed the correct rules and
procedures (Dino Božinović, 2013).
2.2.2 Centralization:
Centralization refers to the establishment of a formal decision making authority by a particular
group of people at the top of the organization hierarchy. Centralization in authority hierarchy
refers to that level of authority in which the individual has decision making power. When
decision is made in high organizational levels, the organization is called a centralized) (Fred,
2012).
Supported that concentration is the extent to which decision making are made at the top of the
organization. There are some decisions that form an area of centralized decision making. This
includes; allocation of facilities, resources allocation, promotion recruitment and selection
process, compensation system, information flows and planning process. The authority is
responsibilities are solely given to the people at top hierarchy to make the above decisions in a
centralized structure (Nelson, 2010).
A centralized organization is structured by a strict hierarchy of authority where most decisions
are made at the top by one or a few individuals. Information from lower levels flows up to the
decision-maker where the information is analyzed and synthesized to gain a broader perspective
in order to aid in decision-making. Information flows down to provide directions to the lower
levels of the hierarchy where lower levels are expected to implement the decisions with little or
no modifications. Processes, procedures, rules, and regulations are laid down by the higher
management and conveyed to the middle management who in turn breaks these processes into
smaller tasks that are team-oriented or individual based Karishma Daswani(2022).
Performance defines as the extent of achievement of the mission of the organization that
develops an employee job (Singh, 1996). Describes performance as it is the result of work
performed by employees in accordance with the objectives to be achieved in the work performed
(Armstrong, 2006) pointed out that that employee performance as the ability of any employee to
successfully and efficiently perform the duties and tasks assigned to him or her within the
organization. Further described as the accomplishment of a given task measured against present
known standards of accuracy, completeness, cost, and speed (Kotter, 1992). The degree of an
achievement to which an employee fulfills the organizational mission at workplace is called
performance. To this degree, individual performance is a core concept within work and
organizational psychology (Cascio, 2006).
The research conducted by (Nwonu, 2017) to investigate the impact of organizational structure
on the organizational performance of selected manufacturing enterprises in Enugu state, Nigeria,
was taken into consideration as a reference for the study. A conclusion from the study's results is
that, aside from its growth goals, the organizational structure in the analyzed organizations has
an impact on organizational performance.
The degree of formalization inside an organization has a considerable positive impact on how
well workers perform in their jobs. This outcome is consistent with ( Miner's 1982) contention
that high degrees of employment regulations and procedures not only stifle but also discourage
innovation, independent work, and learning activities.
Additionally, improving the staff's level of job awareness, work aggressiveness, and work plans,
it was evidently proven that there was an affirmative influence of supervision and
professionalism on workers’ performance in the office under investigation.
The impact of supervision on employee performance was explored by Lee & Kusumah (2020)
with work motivation acting as an intermediary variable. It was an empirical analysis that
employed a quantitative strategy to confirm the impact of the investigated factors. The results of
the data analysis demonstrated that, through work motivation as an intervening variable,
supervision has a favorable impact on employee performance. According to the findings of this
study, firms should adopt approaches and develop plans that pique interest, develop efficient and
creative methods of staff supervision to boost output, and improve overall performance in line
with predetermined corporate objectives.
Investigate indicated that poor supervision has an impact on teamwork and employee morale
when asked about the impact of supervision on employee performance. The effectiveness of
supervision impacts both task completion and effects on employees' productivity. There is an
association between the standard of supervision and worker performance at Makerere
University's College of Commerce (Besigwa, 2016).
The research model serves as a base line for this research; it indicates the overall relationship
between the organizational structure (independent variable) and employee performance
(dependent variables). It also assist the researcher to develop tests of hypotheses concerning the
impact of the independent variable and its dimensions (nature of formalization, centralization of
authority, pattern of communication and supervision) on Employee performance, the dependent
variable in this study has been conceptualized by efficiency, quality, productivity and timeliness
CONCEPTUAL FRAMEWORK
Employee’s
Organization structure performance
7
8
Supervision
9
Centralization
Efficiency
10
Nature of formalization Quality
Productivity
Timeliness
11
Patter of communication
12 Layer of hierarchy
13 Working environment
Work specialization,
CHAPTER THREE METHODOLOGY
3.1 Introduction
This chapter presents the methodology for the study which includes the research design, study
population, sample size and selection, sampling techniques and procedure, data collection
instruments, data quality control (validity and reliability), procedure of data collection, data
analysis and measurement of research variables.
Ethiopian catholic church social and development commission is a national humanitarian non-
profit organization dedicated to saving lives and relieving suffering Ethiopian ECC-SDCO has
implemented extensive programming in food-insecure areas throughout Oromia, Somali, Afar,
Tigray , Amhara, Gambella and Southern Nations, Nationalities, and People’s Regions of
Ethiopia, and also HCS /ECC-SDCOH/ implemented in Eastern Ethiopia covering Eastern &
Western Hararghe zone of Oromia, Dire Dawa Administration, Shinille, Jijiga and Gode zones of
Somali National Regional state, Zone 3 of Afar Region and Harari Region.
Descriptive research is useful because it helps one to portray the probable conditions of a
particular situation. Also in the descriptive method of research, the gathered data are considered
very useful in helping one to adjust or meet the existing daily common problems in life (Sevilla,
1992).
3.6.1 Population
The population of a study is the entire aggregate of individuals or items relevant to a
phenomenon under investigation (Franklin, 2011). According to (Mugenda, O.M. and Mugenda,
A.G. , 2003)refer to target population as the entire group of individuals, events or objects having
common observable characteristics to which the researcher wants to generalize the results of the
study. While the target population is the total collection of elements about which the researcher
wishes to make some inferences (Okiro&Ndungu, 2013). The researcher’s population is
composed of employees from different department of the ECC-SDCOOH (HCS) branch. The
target population of the study consists of eight hundred twenty three (823) employees but the
study considers only 601.
Leary (2004) defined sampling as the process by which a researcher selects a sample of
participants for a study from the population of interest. A sample therefore is the portion of the
population of interest that is selected for a study (DoylePortillo, 2009). Additionally a sampling
frame is a complete and correct list of population members only (Cunanan& Cruz 2008).
According to Sekeran (2001) Sample as a portion of the population that has attributes as the
entire population. As for this study it was assumed that the all woreda and zone operate in a
similar manner with respect to policies and practices despite the fact that they are located in
geographical areas that span the state, the researcher were used to study stratified sampling
technique to select the pertinent sample and the basis of stratification was geographical area.
Stratified proportionate random sampling technique produce the overall population parameters
with greater precision and ensures a more representative sample is derived from a relatively
heterogonous population Denscombe, (2007). From each stratum the study was used simple
random sampled to select 240 respondents.
Sampling is the procedure a researcher uses to gather people, places or things to study. It was the
process of selecting a number of individuals or objects from the population such that the selected
group contains elements representative of the characteristics found in the entire group (Orodho,
A. J. and Kombo, D. K., 2002). A sample size of 238 respondents will be determined using
statistical tables of (Krejcie & Morgan, 1970) as cited by Amin (2005). These will include
various categories as specified in table 1 below:
For this study was used the Taro Yamane’s formula for a finite population standard with 95%
confidence level of interval (0.05 margin of error).Thus, the size of sample from different
department was proportional to the size of the strata or department.
Where:
≈ 240
The following table was generate from the Human Resources data base that shown the locations,
number of employees working at the 10 woreda ,2 zone and one HQ dire dawa. The sample size
from the target population per each strata were illustrated in the below table to show the
sampling proportion from each locations.
Purposive sampling involves identifying and selecting individuals or groups of individuals that
are knowledgeable about or experienced with a phenomenon of interest (Cresswell and Plano
Clark 2011). This sampling was used to select harerge catholic secretarial management.The
researcher chose this technique because the respondents are expected to be knowledgeable and
have a long experience in hararge Catholic Church secretarial management matters.
In order to make sense out of the collected data, analysis was conduct at the completion of the
data collection and presented in a meaningful manner. The data, obtained through structured
questionnaires and relevant documents were interpret and summarize in line with respective
theme against the background of the research questions and objectives. First the collected
questionnaire was editing for completeness and consistency then coded to allow grouping under
different categories. The Statistical Package for the Social Sciences, SPSS 26 software is used
for both descriptive and inferential analyses. Descriptive statistics was employed using mean,
standard deviation, frequency and percentage to describe the demographic characteristics of the
respondents. While, inferential analysis involved correlation and regression analysis to determine
strength of relationship and effect of the independent variables on the dependent variables
respectively.
B0: The intercept term- constant which would be equal to the mean if all slope coefficients are 0
B1-7: Slope of line (Magnitude of the coefficients of the variables) are the coefficients associated
with each independent variable which measures the change in the mean value of Y, per unit
change in their respective independent variables.
i. Ensuring that none of the respondents was named during the research or subsequent
thesis;
ii. Making sure that the respondents were selected to participate without compulsion;
iii. Informing the respondents about the reason and purpose of the research; and
iv. Informing the respondents that consent was sought from the management of the
selected company before the commencement of this research initiative
4.1 Introduction
This chapter presents the data analysis and discussion of the research findings obtained from data
collected from the survey questionnaire that was held on employees of Ethiopian Catholic
Church social and development commission branch of harar. The questionnaire are summarized
and presented using tables to facilitate easy understanding, descriptive statistics analysis of
research variables, and correlation test, normality of data test, multicollinearity and linearity of
data test. Finally the result was analyzed using descriptive presented first followed by the
inferential statistics models were applied by the help of statistical software packages (SPSS). The
descriptive statistics analysis that was employed using table, mean, standard deviations in
examining organizational structure dimensions as well as employees performance. The
inferential statistics model was used to identify the relationship between the seven organizational
structure dimensions with employee’s performance.
To conduct this study the present researcher in total, 240 questionnaires were distributed to the
research participants of professional employees of 1 HQ office, 10 wored branches.
As a result in table 4.3 indicates A total of 240 questionnaires were distributed to ECC-SCOH
which was distributed in person. Out of which 240 questionnaires were completed and returned
and 228 of them were usable. Thus, this gives usable response rates of 95.5% percent. The usable
response is considered as sufficient in such a way that a response rate of 70 percent or above is
usually taken as adequate (Roberts 2004). The higher response rate achieved is due to the fact
that questionnaires are standardized closed-ended in form and they are framed in terms of a five
point Likert Scale normally to allow participants to state their feeling by agree or disagree with a
given statement.
Female 55 24
Male 173 76
20-29 99 43.4
30-39 98 43.02
40-49 23 10.08
50+ 8 3.5
Diploma 8 3.5
Master 31 13.6
PHD 3 1.3
When reviewing the service year frequency of the employees from 228 respondents, 24(10.5%)
respondent have service years of less than 1year that are recruited recently, 97(42.5%)
respondent have service year range from 1 year to 3year, 67(29.4%) respondent are from 4 year
to 6 years, 19(8.3%) respondents are from7 to 9 years and 21 (9.2%) respondent have 10years
and more than of service years.
The education level of respondents in the above table 4.2 shows that from 228 respondents 8
(3.5%) are diploma 186(81.6) of the respondents are first-degree holder employees 31 (13.6) of
the respondent are master’s degree holders and the remaining 3(1.3) the respondent are PHD
holders. Finally, 34(14.91%) of the respondent are department head and 194(85.09%) of the
respondent are expert position.
4.4 Mean Score and Standard Deviation of organizational structure and Employee
Performance
According to Zaidaton and Bagheri, (2009), the mean score below 3.39 was considered as low;
the mean score from 3.40 up to 3.79 was considered as moderate and mean score above 3.79 was
considered as high as illustrated below.
Table 7 Comparison cut-point of Mean Score of Five Point Likert Scale Instrument
13.1.1 4.4.7 Mean and Standard Deviation Result of working environment Response
As the results in table 4.6 indicate that the mean response for working environment was 3.3904
this implies that most of the respondents agreed with most of the statements explaining working
environment And also, the standard deviation of this variable was 0.71048 which it implies that
most of the respondents had the same view or agreed relating to the measures of working
environment
In this section, correlation analysis was conducted in the light of each research objectives and
hypotheses developed. To determine the relationship between OS dimensions (layer of hierarchy,
formalization, centralization of authority, pattern of communication, work condition, work
specialization and supervision) and employees’ performance were investigated using correlation
analysis. This provided correlation coefficients, which indicated the strength and direction of the
relationship. The p-value also indicated the probability of these relationships’ significant. Daniel
M. (2004), states that the cut off points for the interpretation of the strength of correlation
coefficients are.
Range Interpretations
± 0.80 to ± 1 very strong correlation
± 0.50 to ± 0.79 Strong correlation
± 0.30 to ± 0.49 Moderate correlation
± 0.10 to 0.29 Modest correlation
≤ 0.1 weak correlation
Source Daniel M. (2004)
LH FO SU PC CA WC WS EP
LH Pearson Correlation 1
In sum, all the variables treated in the study were positively related to each other though most of
them have strong and moderate relationship. Although, most variables show that a change in one
variable may contribute to a change in other variable in same direction. Evidence suggests that
when two variables or sets of data fluctuate in the same direction, i.e., as one increases so does
the other, or as one decreases so does the other, a positive relationship is said to exist. For
example, as table 4.5 above reveals a change in organization structure (layer of hierarchy,
formalization, centralization of authority, pattern of communication, work condition, work
specialization and supervision) may bring change in employee performance scores. Therefore, all
variable have positive relationship
Tolerance VIF
LH .118 8.443
FO .514 1.944
PC .122 8.208
CA .151 6.615
WC .135 7.393
WS .191 5.222
Checking co- linearity problem with the assumption of tolerance and VIF statistics is important
before regressing. Andy (2006) suggested that a tolerance value less than 0.1 almost certainly
indicates a serious co-linearity problem. Liu (2010) also suggested that a VIF value greater than
10 there is also serious co-linearity problem. When multicollinearity is suspected, it is most
common to perform the regression analysis on each independent variable using the remaining
independent variables to obtain a variance inflation factor (VIF) (Marcoulides KM, Raykov T.,
2019). If the VlF value of a specific variable is higher than 10, the model may be improved by
deleting that variable. In addition to VIF, it is possible to examine whether each variable causes
multicollinearity problems through methods including condition number and variance
decomposition proportion (VDP) (Kim, 2019). Therefore, the tolerance values of the
independent variables of this research are .118, .514, .268, .122, .151, .135 and .191for
organization structure (layer of hierarchy, formalization, centralization of authority, pattern of
communication, work condition, work specialization and supervision of the organization
respectively. Likewise, the variance inflation factors (VIF) are 8.443, 1.944, 3.735, 8.208, 6.615,
7.393 and 5.222 for organizations (layer of hierarchy, formalization, centralization of authority,
pattern of communication, work condition, work specialization and supervision of the
organization respectively. Based on the result, there was no co-linearity in factors affecting
employees’ performance.
b. Dependent Variable: EP
4.6.2. Multiple linear regression analysis
One of the objectives of this research work was to examine the predictive effect of organizational
structure (layer of hierarchy, formalization, centralization of authority, pattern of
communication, work condition, work specialization and supervision to employees’ performance
of ECC-SDCOH. Multiple regression analysis is used to measure the statistical effect of each
individual independent variable on the dependent variable. This measurement is made by
referring the value of R square to explain the magnitude of the effect of the independent variable
on the dependent variable. Thus, the model presents how much of the variance in employees
performance is explained by the selected organizational structure factors: (layer of hierarchy,
formalization, centralization of authority, pattern of communication, work condition, work
specialization and supervision of the organization. Several independent variables can affect the
dependent variable. In the regression analysis, the simultaneous contribution of several
independent variables (=multiple factors) can be measured as a single regression. The coefficient
of determination can also be obtained through multiple linear regressions. The R-square value
generally increases when more independent variables are included in the model. Therefore, based
on R-square, it may be misjudged as a good model when many variables are unconditionally
included. This leads to the idea that a penalty is needed if the number of variables increases. The
penalized result is called an adjusted R-square (Jaccard J, Guilamo-Ramos V, Johansson M,
Bouris, 2006;).
Here the squared multiple correlation coefficients (R2) which tells the level of variance in the
dependent variable (employee performance) that is explained by the model.
The results of multiple regressions, as presented in table 4.6, above, revealed that the
organizational structure dimensions (layer of hierarchy, formalization, centralization of authority,
pattern of communication, work condition, work specialization and supervision) combined
significantly influence the employee performance. The coefficient of determination is 0.971that
indicates the goodness of the model. The adjusted R2 of 0.943indicates 94.3% of the variance in
employee performance can be predicted by the organizational structure offered by the
organization. Therefore, organizational structure has a positive and significant effect on
employee performance.
The study finding in ANOVA table 4.8 indicated that the above-discussed coefficient of
determination was significant as evidence of F ratio 519.100with p-value 0.000 < 0.05 (level of
confidence). Therefore, the model was fit/ appropriate to predict professional employees’
performance using layer of hierarchy, formalization, centralization of authority, pattern of
communication, work condition, work specialization and supervision in the case of ECC-
SDCOH (HCS)
a. Dependent Variable: EP
EP=0.38X1+0.101X2+0.023X3-0.134X4+0.585X5+0.371X6+0.049X7
As shown in table 4.9, all the variables included in this study layer of hierarchy, formalization,
pattern of communication, centralization of authority, work condition, work specialization and
supervision can significantly explain at 95% confidence level to the variation on the dependent
variable employee performance. Further inspection of the regression coefficients of individual
predictor variables revealed that performance planning, we can see from the table above the beta
value layer of hierarchy is 0.038, this result shows that we would expect an increase of 0.038 on
employee performance score for every one unit increase in layer of hierarchy assuming that all
other variable in the model are held constant.
Formalization has (Beta = .101, p < 0.05); the result can be interpreted one unit increase in
formalization can result in .101 increase in professional employees’ performance assuming that
all other variable in the model are held constant. Supervision (Beta= .023, p<0.05); the result
shows that one unit increase in Supervision in .023 increase in professional employees’
performance assuming that all other variable in the model are held constant. Centralization has
(Beta =.585, p < 0.05); the result can be interpreted one unit increase in centralization can result
in .585 increase in professional employees’ performance assuming that all other variable in the
model are held constant. Communication has (Beta = -.134, p < 0.05); this means that when one
unit decrease in communication can result in-.134 decrease in professional employees’
performance assuming that all other variable in the model are held constant. Working condition
(Beta= .371, p<0.05); the result shows that one unit increase in working condition can result
in.371 increase in professional employees’ performance assuming that all other variable in the
model are held constant. Work specialization (Beta= .049, p<0.05); the result shows that one unit
increase in work specialization can result in.049 increase in professional employees’
performance assuming that all other variable in the model are held constants. The seven
independent variables are significant predictors of employee performance in ECC-SDCOH
(HCS). This finding discovered that the six independent variables namely layer of hierarchy,
formalization, centralization of authority, work condition, work specialization and supervision
had a significant positive effect on professional employees’ performance at 5% significance level
and the remaining one independent variable pattern of communication had significant negative
effect on professional employees’ employee performance at 5% significance level in ECC-
SDCOH(HCS) and the positive beta coefficients are associated with the direct relation between
dependent variable employee performance and independent variables, and negative beta
coefficient is associated with the indirect relation between dependent variable employee
performance and independent variables. However, based on the Beta values discussed in the
above table among the seven dimensions of organizational structure centralization had more
effect on employees’ performance compared to others.
The second organization structure item is formalization, as we see from the table above the p-
value of formalization is 0.00, this indicates that formalization has significant effect on employee
performance because the p-value of employee input 0.00 <0.05.this result also implied that the
formalization in the organization structure system has a significant effect on employee
performance in ECC-SDCOH(HCS). According to the stated the cause for the significant effect
of formalization on employee performance (Mequanit, 2020)
The third organization structure item is supervision as we see from the table above the p-value of
supervision is 0.457, this indicates that employee input has insignificant effect on employee
performance because the p-value of supervision 0.457>0.05.this result also implied that the
supervision in the organization structure system has not a significant effect on employee
performance in ECC-SDCOH (HSC).
The fourth organization structure item is pattern of communication, as we see from the
regression table the p-value of pattern of communication is 0.004, this result indicates that
pattern of communication has a significant effect on employees performance because the
significance value of pattern of communication 0.004
The fifth organization structure item is centralization, as we see from the above table the p-value
of centralization is 0.0000, this indicates that evaluation and review has a significant effect on
employees Performance because the p-value of centralization 0.0000
The sixth organization structure item is working condition as we see from the regression table
the p-value of working condition is 0.000, this result indicates that working condition has a
significant effect on employee performance because the p-value of working condition
0.000<0.05.s
The last organization structure item is work specialization, as we see from the table above the p-
value of work specialization is 0.187, this result shows that work specialization has not a
significant effect on employee performance because the p-value of work specialization 0.187
HO1: Layer of hierarchy has a significant positive effect on the employee’s .420 Rejected
performance.
HO2: patter of communication has a insignificant influence on employee’s .000 Accepted
performance
HO3: supervision capacity of employee’s has a significant relation with employee’ .457 Rejected
performance
HO4: Centralization of authority in the organization has a significant influence on .004 Accepted
employee’s performance
HO5: working environment at the work place has a significant influence on .000 Accepted
employee’s performance
HO6: The degree of formalization at work has a significant influence on employee’s .000 Accepted
performance
HO7: work specialization in the work place has a significant influence on .187 Rejected
employee’s job performance.
ANOVA
Sum of Squares df Mean Square F Sig.
As we see from the above table the first demographic factor was gender of the respondent, the
ANOVA result shows that gender of the respondent has not significant performance difference in
the selected ECC-SDCOH, because the significance value sex were (0.889) which is greater than
0.05.The result indicated that gender of the respondent has no group mean difference (there was
not significance performance difference between male and female employees) in ECC-SDCOH.
The second demographic factor in the above ANOVA result was age of the respondent, as we
see from the above ANOVA table the finding revealed that age of the respondent has significant
mean difference (there is employees performance difference between different age group)
between groups because the p-value of age were 0.019 which is less than the chosen value of
0.05. However age of the respondent showed significant employees performance difference
between Different age groups.
As justified in the part of the descriptive statistics of this study, the seven variables indicated that
the mean score response of the participants responded for all independent variables item on five-
point Likert-scales are above 3.79. This showed that the (layer of hierarchy, formalization,
centralization of authority, pattern of communication, work condition, work specialization and
supervision) have a strong effect on professional employees’ performance having a mean value
of 3.74, 3.35, 3.94, 4.07, 3.39, 2.91 and 3.91 respectively. On the other hand, the mean value of
the employees’ performance was 3.80. This implies that the professional employees’
performance in ECC-SDCOH (HCS) was successful because of the existence of the above
mentioned seven dimensions of organizational structure.
Based on the Pearson correlation test of correlation results, the seven organizational structure
dimensions positively correlated with employees’ performance. When we see the correlation of
each dimension of organizational structure with employee performance, there exists a 53.7%
positive relationship between layer of hierarchy and professional employees’ performance; there
exists a 63.9% positive relationship between nature of formalization and professional employees’
performance; there exists a 56.7%% positive relationship between supervision and professional
employees’ performance; there exists a 66.0% correlation between pattern of communication
and professional employees’ performance but they have negative relationship between them;
there exists 91.5% positive relationship between centralization of authority and professional
employees’ performance; there exists a 90.3% positive relationship between working condition
and professional employees’ performance; and also there exists 85.3% positive relationship
between work specialization and professional employees’ performance in the case of ECC-
SDCOH. Moreover, the above findings of this study supported by the finding of (Mequanit,
2020); Mismar B(2018); shabbier(2017); that shows layer of hierarchy, nature of formalization,
supervision, centralization of authority, working condition and work specialization were
positively and significantly correlated and, pattern of communication was negatively and
significantly correlated with employees’ performance at the job context.
Prior to any statistical tests normality test was done by visualizing shape of the histogram
produced, linearity of the relationship among variables was checked using scatter plot and
multicollinearity test was undertaken on the specified model using correlation coefficient as well
as variance inflation factor (VIF) and tolerance value because all the above three should be
fulfilled as basic assumptions required for further usage of multiple linear regression analysis.
For instance, the test result indicated that all the above three as basic assumptions was fulfilled.
Finally, regression model analysis was performed and as the result reveals that the seven
independent variables (layer of hierarchy, formalization, centralization of authority, pattern of
communication, work condition, work specialization and supervision) have contributed or
explained 94.3 % (adjusted R square = 0.943) on the employees’ performance. The remaining
5.7 % variance is explained by other variables not included in this study. This result indicated
that the explanatory variables have strongly explained the response variable. Subsequently, the
multiple linear regressions was performed and as the result indicated that the five dimensions of
organizational structure namely layer of hierarchy, formalization, centralization of authority,
work condition, work specialization and supervision had a positive significant effect and pattern
of communication, had a significant negative effect on professional employees’ performance.
The result of multiple linear regressions separately discussed below in light of empirical finding
of the various researcher on similar or related studies.
Nature of layer of hierarchy had positive standardized beta coefficients and the p-value of
employee input is 0.420, this indicates that layer of hierarchy has insignificant effect on
employee performance because the p-value of layer of hierarchy 0.420 >0.05.this result also
implied that the layer of hierarchy in the organization structure has not a significant effect on
employee performance in ECC-SDCOH (HCS). There is inconsistent finding regarding to the
effect of layer of hierarchy on employee performance (Mequanit, 2020); Mismar B(2018);
shabbier(2017) in their research work layer of hierarchy has a significant effect on employee
performance but the research work of the finding indicated that layer of hierarchy shad
insignificant effect on employee performance.
Nature of formalization had positive standardized beta coefficients and p-value less than 0.05,
the p-value of Nature of formalization is 0.000, and this indicates that the p-value of Nature of
formalization 0.000 which is less than 0.05, this result implied that Nature of formalization has a
significant effect on employee performance, in addition to this the p-value of 0.000 indicates
Nature of formalization highly affect the dependent variable (employee performance). (Rizwan
Qaiser Danish, Sidra Ramzan, Farid Ahmad, 2015). In their research work Nature of
formalization has a significant effect on employee performance.
Supervision had positive standardized beta coefficients and p-value greater than 0.05 (Beta =
0.23, p >0.05). This, therefore, there is an insignificant positive relationship between supervision
and professional employees’ performance in ECC-SDCOH. In other related studies, (Abd.
Hannang,salju,muh. Yusuf Qamaruddin, 2020) In their research work supervisions has a
significant effect on employee performance. (RICHARD, 2015) Is a moderate positive
relationship of between supervision and employee performance
Pattern of communication had negative standardized beta coefficients and p-value less than 0.05
(Beta =-0.134, p < 0.05). Thus, there is a significant negative relationship between patter of
communication of authority and professional employees’ performance in ECC-SDCOH (HCS).
In other related studies, (SHAZIA, 2010), (MEELI, 2011), (FLORENCE, 2015) there is a
significant relationship between communication and employee performance. (YITAYIH, 2021)
More importantly upward and horizontal communications have significant impact on employees’
performance
Centralization of authority had positive standardized beta coefficients and p-value less than 0.05
(Beta = 0.585, p < 0.05). This, therefore, there is a significant positive relationship between
centralization of authority and professional employees’ performance in ECC-SDCOH. In other
related studies, (Mequanit, 2020); Mismar B(2018); shabbier(2017) in their research work
centralization of authority has negative standardized beta coefficients and a significant effect on
employee performance
Working condition had positive standardized beta coefficients and p-value less than 0.05 (Beta=
0.371, p<0.05). This, therefore, there is a significant positive relationship between working
conditions and professional employees’ performance in ECC-SDCOH. (Mekdelawit, 2020)The
study, a strong interaction is found between job performance and physical working environment.
(YARED, 2021) Physical work place environment, reward aspects of the work and worklife
balance have been were positively and significantly related with performance of employees
Work specialization had positive standardized beta coefficients and p-value greater than 0.05
(Beta= 0.049, p>0.05). This, therefore, there is insignificant positive relationship between work
specialization and professional employees’ performance in ECC-SDCOH.
Conclusion
Generally, in this chapter, the response rate is justified and all the collected data analyzed using
descriptive statistics including means and standard deviation and presented in summary form
using tables. Data analysis was done by the using coefficient to determine the strength and the
direction of the relationship between employees’ performance and seven organizational structure
dimensions. Multiple regressions assumption tests namely normality, multicollinearity, and
linearity test were done so as to see the viability of the model to use in this research and then
multiple regressions were done to establish the relations between the seven organizational
structure dimensions and employees’ performance. Finally, hypothesis testing was done using p-
value. If the p-value was less or equal to 0.05 the alternative hypothesis was accepted. The next
chapter presents the summary, recommendations, and conclusion of the study.
The overall results of hypotheses testing indicated that layer of hierarchy, nature of
formalization, supervision, Centralization of authority; working condition and work
specialization have significant and positive relationship with employee performance. Pattern of
communication also has negative and significant relationship with employee performance.
Therefore, the results reported in this study support all hypotheses H1, H2, H3, H4, H5.H6, and
H7
According to the results of this study, employees who have a good organizational structure in
their organization are more successful in their work and have higher working performance.
Hence the study generalizes that organizational structure is significantly correlated with
employee’s work performance.
The first research objective was to investigate the extent to which organization structure
influence employees’ performance in ECC-SDCOH (HCS), the research finding of this
study indicated that the respondents perception of ECC-SDCOH(HCS) were moderately
agree by the employees performance management system of the organization.
Organization structure improves operational efficiency by providing clarity to all level of
organization. The perception respondents of ECC-SDCOH were highly agreed by the
structure matches with the responsibility and the recognition received for the
accomplishment.
The second research objective of the study was to see if there is association between
organization structure and employees performance in ECC-SDCOH (HCS). The finding
of the study revealed that the performance levels of employees of ECC-
SDCOH(HCS),the have determined that there is in fact a relationship between structure
and performance that is the clear structure exist people perform better task are divided
and productivity is increased.
According to the findings, implementing appropriate and fair rules and regulations in an
organization result in improved employee performance which then leads to the attainment of
overall organizational performance. From the correlation analysis, it can be concluded that nature
of formalization is positively and significantly related to employee’s performance. Employees
are able to put more energy in achieving and ensuring high standards at the workplace when
there are proper rules and regulations in the organization and this positively affects employee’s
performance.
As already indicated on the literature review of the paper and the findings of the study, a strong
interaction is found between job performance and physical working environment. With regards
to the respondents‟ perceptions of their work environment and its effect on their performance, it
is revealed that the indoor physical work environment of the sectors under study has effect on
their job performance. From the correlation analysis it can be concluded that, working condition
is positively and significantly related to employee’s performance.
Finally, the findings supported that centralization of authority results in employee performance.
From the correlation analysis it can be concluded that, centralization of authority is positive and
significantly related to employee’s performance. The study indicated that centralized decision
making in the organization incurs to increases the performance of employees and it will result a
positive impact on employee’s performance and overall organization achievement of its goals
and objectives. Centralized decision making also hinder employee’s from thinking outside the
box in performing tasks. Hence, employees do not put extra effort or take any initiative to
improve the way their jobs are performed. In other words, highly formalized and centralized
organization discourages employees from exerting more efforts in achieving organizational
goals.
To sum up, based on the major findings, it is possible to conclude that the effects of
organizational structure on employee’s performance of the ECC-SDCOH(HCS)the results
indicated that each independent variable except centralization of authority(layer of hierarchy,
formalization, supervision, centralization of authority, working condition and work
specialization) has a positive and strong significance effect on employee performance.
5.3 Recommendations
Based on the study conducted and for that matter the results obtained, the following
recommendations were made in order to improve organizational productivity and workers’
performance.
In line with the above results mentioned, the study recommended that ECC-SDCOH needs to
make less layer of hierarchy if they need to improve employee’s performance as long as less
layer of hierarchy has a positive and strong significant effect on employee’s performance.
Organizations need to focus on creating conducive layers of hierarchy in developing workers to
have strong integration, coordination so that they can be realistic in whatever choices they make
and in doing their work. Layer of hierarchy needs to be encouraged and promoted so that the
employees are in a better position to coordinate and interact each other evaluate their actions and
make very informed decisions.
In addition to this, the study recommended that ECC-SDCOH (HCS) should not implement too
much rules and regulations if the organization is to improve employee’s performance which will
then lead to the attainment of overall organizational performance since nature of formalization
has a positive and strong significant effect on employee’s performance. This is because
formalized rules and procedures deter employees from performing their tasks effectively. The
organization needs to develop and recognize employees who constantly struggle to achieve
something and ensure high standards at the workplace through implementing proper rules and
regulations.
Moreover, the study also recommends ECC-SDCOH (HCS) has to take the pattern of
communication aspect of employees in the organization seriously because it leads to improved
employee’s performance. Since communication had a great effect on employee’s performance,
ECC-SDCOH (HCS) is recommended to take charged and make communication part of
organization backbone for achieving vision and mission. Communication makes it possible for
employees to be in a better position to understand organizations strategy and its customer’s or
client’s needs and strive towards satisfying these needs through continuous communications with
employees each other.
Finally, the study recommends that ECC-SDCOH (HCS) needs to decentralized decision making
in an organization. Centralized decision making hinder employee’s from ‘thinking outside the
box’ in performing tasks. Therefore, professional employees do not put extra effort or take any
initiative to improve the way their jobs are performed because of centralization of authority. In
other words, highly centralized organization discourages employees from exerting more efforts
in achieving organizational goals .The employee should participate in decision making so as
increase the performance of employees and to achieve the organization vision. Since
centralization of authority had a positive effect on employee’s performance, ECC-SDCOH
(HCS) is recommended to make employees participate in decision making.
To sum up, the low level of organizational structure exhibited employee’s performance means
that employees were neither exposed for the opportunity of clarifying objectives, method of work
and schedule, nor enjoy the privilege of using their creativity to approach their work flexibly.
Hence, to be more apparent, organizational structure has a significantly positive and strong effect
on employee performance of the ECC-SDCOH (HCS). Appropriate organizational structure
employees performed at a higher level than inappropriate organizational structure employees. In
addition, it has been noted that the employees who have inappropriate organizational structure
can able to perform comparatively at a lower level. Generally speaking, organizations having a
good organizational structure, become more success and create better interpersonal relation,
work more successfully and spend good life of its employees than those organizations having
inappropriate organizational structure.
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APPENDIX 1
Dire dawa University
Department of management
Dear Sir/Madam
I am Abishu wayesa, from dire dawa University doing master Business administration. I am
conducting a research study entitled as “The Effect of organizational structure on Employee’s
Performance in the case of Ethiopian catholic church social and development commission office
of harar (HCS)”. I have designed this questionnaire to collect data from employees working
Ethiopia Catholic Church social and development office of harar.
The questionnaire is used to collect the primary data needed for a research study. Therefore, I
seek your assistance to be as open, fair, and honest in terms of responding to your response to
each question as much as possible you can. The researcher assures you that no individuals will
be identified from their responses and there are no requests for confidential information included
in the questionnaire. The results of the analysis will be strictly used by the researchers for study
purposes only.
Interview
Instructions
Read each statement carefully and give the corresponding answer correctly.
5. Widowed
1. <1 year 2. 1-3 years 3. 4-6 years 4. 7-9 years 5. >10 years
Direction: Following are statements about your organization, as well as yourself. Please indicate
with an ‘X’ the response that best indicates the current reality of your organization or yourself.
= N = Neutral
Organization structure SD D N A SA
1 There are staff employees of the company job Description for all
titles.
2 Design the organizational structure helps to detect and correct
administrative errors.
3 Provides the organizational structure of the organization to connect
with the experienced.
4 Helps the organizational structure of the organization employee's work
as a team.
5 The organizational structure of the organization flexible enough to
develop performance.
Layer of hierarchy
1 My organization has few layers in hierarchy
2 As a result of few layers in my organization, decisions do not take
longer time
3 Few layers in my organizations enable a high level of integration,
certain decision are not always taken at higher level but operational
level due to decentralization
4 Certain decision are not always taken at higher level but operational
level due to decentralization as a result of few layers
5 Engaging lower employees in the decision making facilitate employee
empowerment and sense of belongingness.
6 Reducing layers and empowering low level employees facilitate
employee’s devotion to the vision and objective of our organization by
employees.
7 Fewer layers enhance better communication within the organization.
Work Specialization
1 I am fully satisfied with my present area of specialization
2 My job specification corresponds with my training
3 I have over-stayed in this section
4 My low performance is as a result of monotonous task
Nature of Formalization SD D N A SA
1 My organization do not apply too much rules and regulations
to its employees
2 Sections/departments formal meetings/briefings are conducted
on a regular basis.
3 Every position in this organization has a written job
description
4 There is formal orientation program for new members of
staff.
5 Reducing rules and regulations do encourage creative.
6 Policies and procedures manual are readily available to all
staff.
7 Less formalization facilitate communication within my
company
8 Less formalization encourages creativity and learning in my
company
9 Less formalization in my company facilitates employee
empowerment and sense of belongingness.
10 reducing rules and regulation encourages initiatives from all
levels of employee
11 Less formalization facilitate creativity and innovation
Degree of Centralization hierarch SD D N A SA
1 I feel that centralization leads to delays in decisions-making
process
2 I have less authority over day-to-day operations and
decisions with effect to centralization
3 I face complexity within the centralized work process
4 Any change in the strategic direction of the organization is
decided by the Board or senior managements
5 All actions at the lower level are subject to the approval of
the organization top management.
Pattern of communication SD D N A SA
1 Information related to organization strategy has been
communicated effectively to employees
2 I am satisfied with new changes and the quality of the work
environment
3 Information about significant matters, newly introduced
services and procedures reaches the community on time
4 All decisions must be approved by board of directors before
are undertaken the organization.
5 All operation activities to be undertaken by the organization
are approved by Chief Executive officer.
6 Staffs are asked to give their input on the adoption of new
policies and procedures.
7 No or little action can be taken by a staff on any matter
without supervisor permission
Employee Performance SD D N A SA
1 I believe training is improving my performance.
2 I always set priorities in my work.
3 I have been able to separate main issues from side issues at work.
4 I believe there is fairness in the way my performance is assessed.
5 Employee’s job performance is affected by the current motivational
practice (like salary, benefit, recognition, promotion, etc.) that the
organization is trying to offer.
Quality
5 I worked towards the end result of my work.
6 I have been rated as one of the best employees in terms of the
quality of my work in the organization.
Productivity