The Importance of Organizational Structure in Effective Management

THE IMPORTANCE OF ORGANIZATIONAL STRUCTURE IN EFFECTIVE MANAGEMENT(A CASE STUDY OF GENERAL COTTON MILL ONITSHA ANAMBRA STATE)

Structure in an organization that could be described as a sanctioned network interactions and relationship between positions, their function and occupants and a means through which the management attempt to achieve organizational objective.

A sound organizational structure permits workers to act in the overall interest of the organization thereby enhancing performance.  Wrong structure on the contrary produces friction, aggravate irrelevant dispute and seen to focus on the wrong issues.  How ever a good organizational structure will prevent duplication of function, splitting of function, neglect of duties, vagueness of  responsibilities, illogical assignment and over-burdening assignment.  In undertaking the review of relevant literature, top undercover the orientation of theorist concerning the variable in organizational structure, it will be beneficial to dried the section into early traditional literature relating to organizational structure and those of contemporary literature review, the major element of structure and the type of structure obtainable in today’s world and their representation in organizational chart.  And finally render a brief history of the total business organization to be researched on, represent its organizational charts.

• THE TRADITIONAL EARLY PERSPECTIVE

Decoying that organizational differ with respect to internal structure is one thing determine what of these possible arrangement is most effectiveness s quire another.  It is on this later task that the field of organizational design focuses.  And in an attempt to accomplish this crucial task, management theists and perspectives.

Among the earliest of these theists was Fredrick W. Taylor 32 In his work “The principles of scientific management” he focused mainly on effective job design and recommended the scientific selection and training of workers for specific job specialization.  He emphasized the important of corporation between management and workers, as well as a pair division of both work and responsibility between them.

This recommendation can be interpreted as imp living relatively short chain of command centralization as well.

Summary of several Taylor’s basic principles for effective management are still relevant today of organizational structure.

The ideal of German sociologist Max Weber, is the next to Weber Bureaucracy represents the most different organizational design.  He therefore recommended that it should be adopted recommendable and should be widely as possible.

With fact that in its ideal form Bureaucracy is characterized by fore major factors.

1. It will involve a high degree of specialization and division of labour.

2. The existence of a final literarily, thus thee would be a chart and orderly chain of commands
3. All official functions are to be carried out in accordance with consistent rules policies and procedures to guide behavior.
4. Constant between managers and their subordinate would be impersonal as it will be guided by rules and regulations.
5. Employment would be based on qualification and promotion or merit. It is a result only the last person would be hired for various jobs and only

Application of those results in high specialized jobs.  Departments based on function narrow span of centralized authority.  Hence a relatively “tall” organizational structure with many layers of management results.  Henri  Fayol was another early theorists of note.  He identified fourteen principals of management.  Some of these principle are meant to be guide to manage design principals organizational structure.

They include:

1. DIVISION OF LABOUR: Work should be divided and subdivided to encouraged specialization and efficiency.
2. AUTHORITY AND RESPONSIBILITY: Manager must give others so that they can get thing done?

A job holder should have authority commensurate with his job responsibility.

3. UNITY OF COMMAND: Bach employee must reports to more than one superior conflicts on instructions and confusion of authority would result.
4. UNITY OF DIRECTION: Jobs that are alike and with the same objective should be grouped in departments according to function of process and directed by only one manager.
5. CENTRALIZATION: Fayal believed that managers should retain final authority, but need to give their subordinate enough authority to jobs properly.

Applying these principles created organization where jobs are highly specialized, department are based on function and process, span of control are based narrow and authority is centralized.  Such organization tends to be relatively “tall” with several layers of management through which communications and direction must pass.  Among the early theories, the most widely quoted authority is the span of management has been the eminent management consults and scholar Lijndall F.  reflecting on his experience work conduce that “ no superior can surprise directly the work of more than four or at most, six subordinates whose work inter lock.  He admitted things that span may be such wider where the work of subordinate is not closely interrelated and managerial coordination is not required.  Other early wrote advocate various span.  As summarized by Vir Wick, these “classical” writers appeared to advocate a span of control, of organization and a span of up to twenty to thirty persons of the lowest education.

The above theories are generally referred to as the classical theories.  Another approach to organizational design emerged from the result of the New thorn studies which contented by Elton Mayo and his fellow research from Harard  university.  The study revealed that interpersonal relationship, groups and managerial styles could decrease or increase productively on the basis of the above enological researches, have assigned that the classical structure could be improved by making it less formal and by permitting more subordinate participation on decision making.  In other words they never rejected the classical theories but tired to improve on it.  For instance Pensis like, Inn formatting his theory of “Linking gin” felt that each may be of an organization may actually be viewed as believing to a group.

Those groups can be quite independent of the formal organization charts furthermore  membership in this groups can exist powerful effects upon their attitudes, value, normal and their behavior.  Indeed since commitment and to Yalty such, group can be quite strong, motivation, words and productivity can alt be affected.  He also suggested that to make such group useful to the organization, a series of step should be adopted.  This is turned system 4 management which include such strategies as encouraging open communication, decentralizing decision and setting goals in a participative manner.  Another theories, Chris Argyris was concerned about the degree of control or dominance managers exercise over their subordinates in  the bureaucratic structure.  Argris argued that such domination of the work place by managers can cause subordinate to become passive, dependent as well as decrease their sense of responsibility and self control.  To Argris, such conditions were incompatible with the human need for anatomy, self experience and accomplishment.   As such frustration and dissatisfaction result in sailed employment leaving the organization or may result since in sailed employment leaving the organization member must meet.  Subordinate must be allover more independent, a more informal structure and participatory organizational structure.

The whole theories received 20 have been generally criticized for neglecting the influence of technology and tendency to prescribe a simple structure has not been favoured by modern theories.  For example Heral Koontz, have taken the position that there are too many variable in a management situation to truculent that there is any particular member of subordinates which a manager can effectively suspend.  It could be concluded that there is a limit to their member of subordinates, a manager may effectively supervise but the number will depend upon some underlying factors.  Like, training required or possessed by subordinate, clarity of authority.  Delegation and quality of communication techniques.  In a likely manner, high degree of specialization has been critical zed as it is believed to cause alienation of workers fatigue and boredom.  Hence 30 far, no particular structural designs could be regarded as final

• THE CONTINGENCY APPROACH.

Organization face such a wide range of internal and external conditions that there can be a be single structure or design that will prove successful for all.  This is counter to the contingency approach, assume, not best single structure.

Rather the one that prove must effective carries with a number of situational factors.  These factors have been identified as environment of the business, the technology it operates, the strategies of the organization and the people working in.

• ENVIRONMENT AND STRUCTURE.

Burn and stalked in examining the structure of twenty different  companies discovered that external  environment  facing these organizing atoned different shapely in firms of the organizational stability.  They predict companies with lower stability showed a relative formal structure providing high centralizing and a cleared of command.  The companies with stability showed a more flexible structure.   Taste was not as clearly defined and less emphasis was placed on the chain of command.

In contrast on with the lowest stability showed the least formal structure.  Task were not rigidly specified, decision on making was participative and information flowed freely both up and down the organization therefore conclude that many6 organization adopt other organic or mechanistic style f structure.  And which of this approach is more effective depends upon the nature of the external environment.

Futher, support for this wee period by a well known research by Lawrence and Lorsih.  These investigations compared highly effective and less effective organizations department on organization such environment.   Such as container manufacturing companies.  Lawrence and Larsih used the word “differentiation” to mean the degree to which manna Gowal stated with different functional department trained in their organizational value system.

They further season extent by an instable environment

Therefore, different style of structure might be appropriate for different department in the same organization.  For example the search department of a firm might deal directly with a great deal of change turbulence because of the constant development of new product.  Its managers therefore, might in the turn of other hand; the production department on the source from facing the lowest degree of environmental uncertainties could do with a pronounced formal structure (mechanic).  The sales department could.  Fort in some where between the two extreme.  They also asserted that high performance organization in each case were those one that are capable of achieving greater integration than others.  Their study supports the importance of an organizational internal structure being appropriate for its environment.

• TECHNOLOGY AND STRUCTURE

It has established that organization differ tremendously in the type of technology empty in there resource conversation process clearly the tools and methods selected by a given organization in a study by Joan wood, the classified technology operation by business organization are as follow

1. Unit and small batch production.
2. Large batch and mass production.
3. Process production

When reanalyzed the firm in study, important finding from unit to production the greater the number, if managers and manager level in other coordination

Hierarchy “on the source not Donnelly et al depending upon the decision of managers jobs and delegation of authority.  Identified these important parts of organizational structure as jobs department and authority.

Baron, thereafter presented some dimensions to cover these element as follows, ob specialization, departmentalization, chain of command, span of control, centralization, versus staff, complete.  These dimension corrected with that Omeuchelwa referred to an element for describing organizational structure 2f was therefore rather to dispense these clearnts and their dimension under there sub-heading as follows: division of work departmentalization and authority delegation.

• DIVISION OF LABOUR

Division of work involves determining the scope and content of dividedly job “The most important consideration in dividing tasks is special of labour. It was introduction by scientific management theories is through the use of motion and time studies.  They reasoned that specialization brings about higher productivity.

This view was suppose to the idea of many.  Bensis Likert, for instance has stated that eva specialization can lead to low level of morals and low production.

This view is shared by Donnelly et al when they stated that it appears that many workers are becoming increasingly dissatisfied and frustrated by motive mechanically poked task and are reacting negatively.  With out put restriction, poor quality work absent high turner.

Even, Baron had noted that smarts could result from performing brig and mono ronous taxes kab that the political economics had their word that specialization could lead the alienation of these critics.

We could still witness specialization on modern organizations.  Some authors had suggested how to reduce the unexpected result of over specialization.  The beery for example suggested job enrichment as solution of the problems.  As he described it job enrichment select to improve both efficiency and human satisfactions by means of building peoples jobs, quite especially, greater scope for personal achievement and recognition, more challenging and responsible work and more opportunity for individual advancement grower.  Basically what this simply means is that job arrangement occurs necessary a job scope and depth.  Scope refers to the number of activities performed in the job, why depth refers to the autonomy responsibility and discretion or control over the job.  They are, the Varity in the job task identify, task significant, autonomy and feed back.  These, for some dismissing are what Hack man and his associate believe need to be modified to accomplished job enrichment.

Job enrichment programs are even being criticized by some authors.  Fear significantly that it works only for people who seek fulfillment in the job.  He argued further that positive effect on the quality of life at work.  Can result only from management asking the individual worker that position effect on the quality of life at work it can result only from management asking that position effect on the quality at work can result only from management asking the individual workers that they desire and satisfying them accordingly.  Job security and work stimulate not from announcement responsibility and greater job variety.

Closely, related to the of specialization degree of formulation to be adopted in an organization.

Formalization refers to extent to which job expectations; rules procedures, politics and other resources that describe expected behavior have been put in written from.  It is generally believed that a strong relationship exists between organization formalization and specialization.  Since organizations with routine and specialization is the problem of determining the worker is more likely to have greater formalization of roles.  Donally et al has therefore stated that.

Sample and routine production and administrative task lend themselves to extenuative formalization, while complicated and non-routine scientific task are not amendable to formalization mechanistic structure could definitely be, since charge will be minimal on the other hand a low degree of formalization could be its effect changes that will be confronting need sound decision from management, aimed at balancing an organization a long these sections.

Some wrong choice spell doom for this is that management effectiveness could also be considered from the point of view of subordinate satisfaction.

• DEPARTMENTATION

The second aspect of organization external structure dimension worthy of attention is departmentalization. It involves grouping of position companies and components of the organizational sometimes in order to homogenize their positions or components it also involves two major considerations.

1. The bases for classifying jobs into departments
2. The size of each department.

Donnelly et al stated that jobs are grouped into two major categories.

Output and external operations.  They presented three commonly used output oriented bases for grouping jobs along internal operations-oriented models are by function and process.  Patrick Asiegbu said that three are widely used in forms of departmentation rig functional.  But in their view of an organization can be carried out an on four bases by common purpose, common process, a particular oriental and a particular geographic area.  One can notice the similarities apparent in the above bases.

It has been emphasis that in grouping position organization primarily aims at placing those job unit or department under one unit or department will therefore, according to Thompson permits coordination to be handled in the least costly manner. One should note that large corporations use different bases all of the same time at different levels.  Hence there is no hand since, the basis actually chosen is a matter of advantages and disadvantages.

The second consideration in departmentalization is the size of each department.  This refers directly to the span of control.  Span of control or management is fair from a trial decision.  As we shall see the number of people reporting in a manager has directly implication for both the manager and organization itself.

The determination of span his described by Mofer land as a function of the capacity of the higher execution and the capacity’s of the subordinate being supervised Kriener seems to summarized the view by starting that span is a contingency management problem while agreeing with Krietner, one  may note that is the contemporary situation some factors are very relevant ion determining the numeral straight of span.  This is stoner and freeman land state that the appropriate span of management can’t be calculated from any sough formular or rule of thumb.

There are however some qualities that indicate whether a span should be relatively bread or relevant narrow.

The guideline include factors relating to the situation subordinate and the manager

The situation will include the size national technological base of the enterprise factors relates to the subordinates are loss literacy level and performance.  While that relating to the manager includes his intellect and capacity as a supervisor.  A very narrow span could result in over supervision, which effect workers moral and increase cost in an organization.

Other important result or consequences of a narrow span is a tell organizational structure while that of a life span result in a flat organizational structure.

AUTHORITY AND DELEGATION

It is through delegation of authority that members of an organization are given power needed to carry out their assigned responsibilities.  But the degree of delegation does have great importation for managers authority have, will be regarded as the organizationally sectioned right to make decision.  It could centralization as the locus of decision making authority within an organization.

In recent years expects have identified several advantages decision making on group are likely to have over individual decision making a group are likely to have over individual decision making.  For instance, in Japan employ voluntary group that meet on company time to discuss production problem or ways to improve product quality.  This group has been reported to be quite effective.  One study found that group was five to six even more likely to solve well structure problem that they waste more time and energy in the process.  There advantage stems mainly from the polling of resources a (two hands, better than the  and what is known and referred to as the sugary effect.

Too much centralization are as well cases extent of work and information and therefore reduce efficiency.  Hence some research have suggested that job stress participative decision making have accused of being doctorial exploitative and worse.

In author study, look Schweger found that dictatorial exploitation and worse participating decision making was associated productivity that in traditional but with no greater productivity than in traditional organization in which management makes decision for the workers.

Another study even revealed that problem involving creative thinking provides a good strange show supervisor performance their groups in such decision.  So managers in adopting an organization must consider seriously this organization itself.

The issue of delegation of authority in the organization is closely related to the issue of chain of command.  The chain of command of one supervisor.  Receiving commands from two or more supervisor is likely to bring about confusion and frustration.  The not with sanding Donnelly et al recognition warrant even, the modern native or protections design of organizational structure does no entertain the modern, since and could be reporting of balancing their advantages as and disadvantages of each from adopted.

2.5           TYPE OF STRUCTURE

According to Galbraift and Natharson, structure is the segmentation of work into roles such as production, manufacturing and so on, the recombining of roles into departments or decision around distribution of power across this role.  As a result every organization must chose from an array of option, low it extent to structure it in doing these managers must bear in minds that.  The internal functioning of organization must be considered with the cleared of the organization task, technology or external environment and the needs of its members if the organization is to be effective.

To some extent, structure shows that the level of specialization of work activities.  It also indicates the organization hierarchy and authority and reporting relationship, on organization structure is usually reported in the form called organization ahead.

Subsequently, Gall smith and Clatharison identified four difficult types of organizational structure they are as follows

1. Functional organization type
2. Multi-dimensional structure type
3. Unrelated business organization
4. Matrix organizational types

Ejofor         classified structures as follows:

1. Line organization
2. Functional organization
3. Line and staff organization

flippo classified as follows?

1. Line organizational structure
2. Line and staff organizational structure
3. Functional organizational structure
4. Project structure

While the view of Onwnelekwa corporate none closely with that of Galbratraitj and Mathanson.

That of relation could be identified among the whole.  For elaboration the centralized functional structure, mostly have socialized functional department eg marketing, production, supplies and purchasing, finance and small business organization existing in a relatively stable environment figures 2-1.  the multi-divisional model is more centralized hence the department can be organized in the basic of product.  Variety or region usually all the resources necessary to manufacture and feed the production or to control of a particularly divisional mangers figures 2.2-2.4.

The unrelated (Holding) company structure is even more decentralization.  These may be unrelated division business activities which calls function of capital allocation and establishing mission. Hence the divisional manager is given considerable authority and responsibility. Matrox organization is an attempt to combine the advantages of a functional organizational structure (multi-divisional) in a matrix structure an employee has in effect two boxes.  One chain of command functional or divisional and with a vertical relationship. The second chain of command s horizontal in its relationship.  Because of thes reason Matrox structure is often referred to as a multiple command system. Hence on the line organization, there is direction of authority form to the bottom.  However there is one final authority. In other cases supervisor exist at intermediate level.  Fabara has identified it as this oldest form of organizational structure.  This could be selected in much aspect to the centralization function structure.

It tends to depend much on the personality at the top than is the case with other structure patterns.  In functional organization, every person who perform a particular type of work fails a from the head of account department to all accountants.  A production expects to manager their production a sole or marketing specialist supervisor marketing and sales.  Subordinates may find themselves in several bases.  Their purchasing managers can do the purchasing for all the departments one can easily visualize the size of canalization and this needs effective coordinate if it is be useful to the organization. Fig.2.6.

In line-staff organization, the flow to authority precedes from the most part a long food channels as with line organization.   But suitable provision is made for the use of specialized by the line management.  Staff is the source of items it advice other segment of the organization as such matters as purchasing, production system. Personnel and France?

The last of the forms, identified by Floppo project structure correspondent in all respect with native organization identified by Gall smith and Natharson.  It result by supervising a project design on a functional organizational structure.

Here, employees irk in functional department and report to the head of these units.  In addition.

However, they may be assigned duties written a specific project and report to the manager of that activity as well.  The key advantage is that makes it possible to makes medium use of specialist and to makes it possible to make response to sudden changes in the market piece or for special need for organization. Figure 2.8

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