Effect of Structure on Organisational Performance of Nigerian Commercial Banks

Abstract

This study examines the effect of on organisational performance of Nigerian commercial . Organisational design is the choice of appropriate structure for the organisation.

Some corporate managers often do not critically align the structure of the firm with its nature and scope.

This non- alignment makes the for corporate effort and desired organisational performance to be actualized.

Also, the of the formal structure and activities often exist independently of the members of the organizations who carry out the work.

However personalities are an important part of the working of the organisation.

In practice the actual operation of the organisation and success in meeting its objectives will depend upon the behaviour of people who work with the structure and who give direction, shape and personality to the organizations’ framework.

Therefore, when the human elements are not organized in layers in terms of the structure, the organisation will live in a state of anarchy, thus affecting efficiency. This will eventually lead to low productivity hence low profitability.

Thus, it is against these backgrounds that this study sought to evaluate the relationship between structure and organisational efficiency of Nigerian Commercial banks;

evaluate the role of structure on cost efficiency of Nigerian Commercial banks and determine the role of structure on job satisfaction of Nigerian Commercial banks’ employees.

This study used the survey research design and the respondents were drawn from fifteen commercial banks in Enugu state.

The sample size consisted of five hundred and forty-three (543) managerial and non-managerial staff of the commercial banks in Enugu state and data collection was by questionnaire structured in five (5) point likert-scale.

Introduction

Background of Study

The term organization has been defined in several ways. Leavitt (1962:55-70) defines it as a specific configuration of structure, people, task and techniques.

Structure describes the form of departments, hierarchy and committees.

It influences the organization’s efficiency and effectiveness and thus organizational structure refers to the institutional arrangements and mechanisms for mobilizing human, physical, financial and information resources at all levels of the system (Sachdeva, 1990:14).

There is a long standing concern that strategic literature needs a better understanding of how organizational structure and decision-making affect organizational performance.

This concern goes back at least to Cyert and March (1963:45), who used the following questions in motivating their theoretical enterprise; “What happens to information as it is processed through the organization?

What predictable screening biases are there in an organization?, How do hierarchical groups make decisions?” But with a few exceptions, questions of this sort remain mostly unexplored (Rumelt et al., 1994:78).

This lack of knowledge regarding how decision making structure affects organizational performance continually resurfaces in different areas of management,

for example, in the context of ambidextrous organizations, Raisch and Birkinshaw (2008:375-409) note that far less research has traditionally been devoted to how organizations achieve organizational ambidexterity.

References

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Anderson, C.R. (1988), Management: Skills, Functions and Organization Performance. USA:      Allyn and Bacon

Argote, L. and H. R. Greve (2007), “A Behavioral Theory of the Firm—40 years and counting:    Introduction and impact,” Organization Science, 18, pp 1-20

Argyres, N. S. and B. S. Silverman (2004), “R&D, organization structure, and the development    of corporate technological knowledge,” Strategic Management Journal, 25, pp 345-367

Armour, O. H. and D. J. Teece(1978), “Organizational structure and economic performance: a      test of the multidivisional hypothesis”, Bell Journal of Economics, 9, pp 35-56
Ashby, W.R. (1956), An Introduction to Cybernetics, London:Chapman & Hall

StudentsandScholarship Team

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