ORGANIZATIONAL STRUCTURE AND CORPORATE PRODUCTIVITY(A STUDY OF PRODECO INTERNATIONAL COMPANY, NIGERIA)

CHAPTER ONE

INTRODUCTION

1.1BACKGROUND OF THE STUDY

The quest for effective and efficient means through which an organization can achieve its pre-determine objective of efficiency and productivity has led to the propounding of various theory, principle, concept etc. all geared toward accomplishing set objectives with case. In every productive situation they have to be design for the sole purpose of achieving group goal. Indeed in recent time some firms fails due to poor designing of their organization structure. Interestingly a well design organization structure is a framework of formal relation that has been establish through the process of organizing.

According to Hart as quoted by Baridam (1995). A well design organizational structure is a kind of skeletal framework that delineates the level of authority and responsibility; define information channel and establishers primary control point within the organization.

Tamunebi (1996) sees organization structure as a framework of role responsibilities that is created for co-ordination of the activities of people and units that work towards the achievement of responsibility is accomplish. The structure of organizational structure eliminates the chaos. Frustration, function and inability to pull in the same direction that would have arisen due to lack of an organogram.

In focusing and relating on human resources, executive will play a major role in helping their organization achieve high performance as the key component of this effort is to optimized efficiency and productivity in service delivery, when organizational structure help in efficient service delivery it therefore means that organization structure will relieve some administrative burdens.

The organizational structure affects organization efficiency in terms of productivity and efficiency delivery which help to drive performance improvement in workers’ productivity. The organizational structure has proactively designs and develops and develops strategies on different programmes for all levels and each as a monitors compensation benefits, leaning, recruitment or recruiting talent management correspondents with a centre of expertise, several element of this model may be organized as a shared service and self-service component or the entire model may be efficiently working closely with clients to help define the optimal organization strategies and the organizational structure that will lower transactional cost while providing more efficient and effective productivity in terms of increase in skill both in production and services.

Productivity is a relationship between outputs and inputs. It rises when an increase in output occurs with a less than proportionate increase in inputs, or when the same output is produced with fewer inputs (ILO, 2005).  Productivity can also be considered in monetary terms.  If the price received for an output rises with no increase in the cost of inputs, this is also  seen  as  an  increase  in  productivity.     Productivity  improvements  can  also  be understood at different levels. The productivity of individuals may be reflected in employment rates, wage rates, stability of employment, job satisfaction or employability across jobs or industries. Productivity of enterprises, in addition to output per worker, may be measured in terms of market share and export performance. The benefits to societies from higher individual and enterprise productivity may be evident in increased competitiveness and employment or in a shift of employment from low to higher productivity sectors.

In the largest renewal of organizational structure contact will provide firm with higher level of work force management and performance services as well as the cost saving.

1.2 STATEMENT OF PROBLEMS

Most organization paid lip production service to personal problem of which is the reason why we optimize organizational structure as a solution to personnel problems and also as a tool for enhancing productivity. Structure plays a vital role in directing the activities of and productivity. Structure play a vital role in directing the activities of organizational members toward goals attainment, some organizations especially small ones start off without any formal organization chart but with time the worker and manager find out that they can no longer cope alone and as to employ some people to help out. He went ahead to reexamine his objective, assign tasks and responsibilities, delegate authority define level of authority and finally develops a medium for co-coordinating the activities of his helpers thus a structure in born.

The aim of this research work is to examine the effect of organizational structure on corporate productivity in Prodeco international Onne Port Harcourt.

1.3 OBJECTIVES OF STUDY

The main objective of the study is to examine the effect of organizational structure on corporate productivity.

1. To examine the relationship between line structure and corporate productivity.
2. To examine the relationship between line and staff structure and corporate productivity.

iii. To examine the relationship between informal and formal structure and corporate productivity.

1. To examine the relationship between matrix structure and corporate productivity.

1.4 RESEARCH QUASTION

1. Does line structure associate with corporate productivity?
2. To what extent does line and staff structure influence corporate productivity?

iii. What is the extent to which informal and formal structure influence corporate productivity?

1. To what extent does matrix structure associate with corporate productivity?

1.5 SIGNIFICANCE OF THE STUDY

Considering the function of organization especially that of Prodeco international which are into construction, production and maintenance require the relevance of structure in the provision of conductive environment in which organization cannot be over emphasized.

This research project on completion will highlight the important of structuring as it will help managers to determine the impact of structure on organization this work will also identify the basic concept on which structuring relies, regardless of the type and composition as well as contribute to the body of existing knowledge in management science, especially in the realizing of organizing and how it is influence organization efficiency and productivity.

1.6 SCOPE OF THE STUDY

The scope of the study is limited to Prodeco international. It will only cover the area of organization and its impact on efficiency and productivity. A research to determine to access organization structure should cover a wild population to give an accurate and efficient production.

1.7 LIMITATION OF STUDY.

In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

Thirdly, poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed. Lastly, poor measurement instrument.

1.8 DEFINITION OF TERMS

COST REDUCTION: This is where the actual cost incurred in organization structure is less than the standard of no structure.

EFFICIENCY: This is the process of doing something well with no cost.

ORGANIZATION: This can be defined as a social unit that is constructed or reconstructed to seek specific goods through division of labour and specialization (Tamunoebe 1969).

PRODUCTIVITY: This refers to the rate at which a worker, material, machine is put into production input and amount of goods or services.

STRUCTURE: This refer to the state of being well organized or planned with all part linked together.