CHAPTER 1

INTRODUCTION
1.0 Background of Study
Every organization is made up of both human and physical
resources, these resources are brought together in order to
accomplish objectives by identifying task, providing tools and
technology and creating structured relationships. It is however
the responsibility of management to determine the best
structure that will optimize the utilization of the resources.

Organization is a means of achieving the best result from

concerted effort, organizations deals with people and their
relationship within an enterprise. Organization is an entity set
up for a purpose; the major reason is to create utility, the
satisfaction of customers is by creating goods and delivery of
quality service from any enterprise. For enterprises to remain
economically viable and virile, they must attain organizational
effectiveness particularly in todays competitive and turbulent
business environment.
Organisation is uniform, structured and co-ordinated effort for
achievement of economic/financial objectives for profit seeking

firms

and

social

for

non-profit

Organisations.

To

Satisfy

Objectives, organisation channel endeavours of its employees

in

unified

direction

and

resources/responsibilities

establish

and

control

means
under

of

allocating

arrangements

referred as structure. Buchanan and Huczynski (2004) defined

structure

as

relationships
employees

formal

that
so

system

controls,

that

they

of

task

co-ordinates
work

and
and

together

reporting
motivates

to

achieve

Organisational goals.

On the other hand the subject of effective management is also

important and it is paramount for managers to pay attention.
For measuring organization ability, managers should know the
present capacity of their organization and what is needed to be
done

to

achieve

the

organizations

target

by

having

benchmarking factor to assess with.

Many theories of organization have been propounded by the

management

scholars

right

from

the

classical

era

of

contemporary period. These management gurus had common

opinion that all profit oriented organizations have sets of

objective to be achieved. For these objectives to be achieved

issues

centered

on

the

effective

management

of

the

organization like division of work, hierarchy of authority, Chain

of

command,

Span

of

control

and

other

principles

of

management should be put in place in a well-tailored manner.

For the purpose of clarity and the practicability of this study,
several

forms

of

organizational

structure

like

functional

structure, line and staff structure can be adopted. Some other

types of structure are product based organizational structure,
geographical structure and matrices structure.
Unfortunately,

despite the obvious advantage

or

impact

inherent in structured business into attained forms, many

Nigeria organizations do not appreciate the qualities and
guideline

peculiar

to

the

chosen

structures.

This

main

adherence to the trend of the chosen structure accounts for the

numerous cases of discontinuity and failure in business. The
appropriateness of the organizational structure also causes lack
of co-ordination, low morale, back passing, role clash of
responsibilities and weak financial base in most Nigeria
organization especially the government institutions which is a
mirror of how the Nigerian organization is.

The preponderance of organization ineffectiveness and lack of

effectiveness of most Nigeria organizations are traceable to
structural adequacies that makes it mandatory that an
investigations into these problem should be carried out in other
to solve them.
This need makes the research, the impact organizational
structure in managerial effectiveness of selected organization
of government more appropriate.
Organization structure plays a pivotal role in the effectiveness
of an organization and achieving its goal. The organizational
structure also regulates the activities inside the organization,
reveals the responsibility lines and authority and finds out who
is the leader or manager? Whom we get reports from? And how
communication is channeled in an organization (MOGHIMI:
1998:7).

Organizational structure is therefore the framework on which an

organization is built; it is a network of authority and role of
relationships. In a situation where these are obtained, the net
result

is

the

harmonization

of

operational

activities,

enhancement of friendly atmosphere among workers in the

organization and the smooth attainment of the organizational

objectives.
For the purpose of clarity and the practicability of this study,
several

forms

of

organizational

structure

like

functional

structure, divisional structure, matrix structure, line and staff

structure can be adopted. Thus structure is synonymous to a
rope that employees hold and binds all employees towards
unified direction and aids the identification of Who is Who and
What is What of organisation. Mullins (2005) emphasized that
structure affects both productivity and economic efficiency and
also morale and job satisfaction. Important notion stemming
from Mullins assertion is that good structure will not only have
tangible

effects

motivation

thus

i-e

financial
impacting

but

in-tangible

organisations

affects

like

operational

effectiveness as employees carry out operations/tasks of

organisation. This study therefore discusses the importance of
organizational structure on effective management with a study
of the Nigerian Private Sector and to know if the organizational
structure is truly needed in an organization.

1.1 History of the Company

Yaba College of Technology was established in 1947 as a

successor to Yaba Higher College. It attained autonomous
status in 1969 by virtue of Decree 23 which granted it the
mandate to provide full time and part-time courses of
instruction

and

training

in

commerce

and

management,

technology,
agricultural

applied

science,

production

and

distribution; and for research.

"Yaba the Great" as the College is fondly known today, started
out as a technical institute which succeeded the Yaba Higher
College in October, 1947 and stands to be the Premier Higher
Institution in the country.
The College was first called "Yaba College of Technology"
through Decree 23 in 1969 and again, Decree 33 of 1979 renamed it "Federal Polytechnic Yaba". However, as a result of
persistent

pressure

mounted

on

Government,

in

1980,

Government agreed to spare the original name of the College

and it reverted to its old name of "Yaba College of
Technology"
The main objectives of the College, according to the

decree

establishing it, is to provide full time and part-time courses of

instruction

and

training

in

Technology,

Commerce

and

Management, and in such other field of Applied learning

relevant to the need of the development of Nigeria in the areas
of industrial and Agricultural production and distribution and for
research in the development and adaptation of techniques as
the Council of the College may from time to time determine.
In Pursuit of this objectives, the College has continued to
develop structurally, humanly and materially and today is made
up of nine (9) academic units called Schools, headed by Deans
and

Thirty-four

(34)

Departments

headed

by

Heads

of

Departments.
1.2 Statement of the Research Problem
In many institutions and organizations, organizational structure
has made a very big impact towards lifting the affairs of the
organization. Organizational structure is a very vital tool in the
management of businesses when workers and parties involved
adhere to the structure.

Any organization that is not properly structured finds it very

difficult in making decisions, lacks proper chain of command

which brings about conflict in style, multiple reporting channel

and contradicting ideas. These would cause a negative impact
on the organization because the workers are not properly
managed to be efficient and effective.
Any organization that is not properly structured finds it very
difficult

to

uplift

the

affairs

and

the

operation

of

the

organization, there by constituting a negative impact on the

organization if workers decided to act on their own without
delegation of duty and responsibility.
All these problems mentioned above are controllable. These
can only be achieved by setting a good structure in the
organization that would suit the day to day activities of the
organization.
This study set out to establish important functions and needs
for a well-defined organizational structure so as to prevent
overlapping of functions in organization.
This study will help a well-defined organization structure to
achieve an organizational objective so as to bring about
efficiency; also investigate how a well-defined organization
structure is arranged in a firm or enterprise so as to promote

high productivity. It would also address duplication of functions

which is a flaw of organizational structure.
1.3 Aim of Study
This

study

aims

at

determining

the

importance

of

organizational structure on effective management, a case of

the Nigerian Private Sector

1.4 Objective of the Study

The study seeks to provide answers to the following:
How does a well-defined organization structure help in
achieving organizational objective so as to bring about
efficiency?
How does a well-designed organizational structure lead to
a clear order of responsibility?
What is the importance of organizational structure in
management?
How do you

determine

the

appropriate

form

of

organizational structure for a business?

Does organizational structure improve productivity?
What type of organizational structure encourages workers
participation most?
The study also set out to discover how organization structure is
designed so as to determine the other of responsibility and also

to examine critically how functions can be clearly shown in an

organization structure so as to prevent duplication of functions.
1.5 Research Question
It is the objective of this study to know:
i.

What type of organizational structure does YABATECH

have?
ii.

What is the adequate number of staff to be supervised by

one boss?
iii.

How they transfer from one duty post to another in the

organization?
iv.

Is the duty schedule of all staff adequately defined?

v.

What are the criteria for rewarding and promoting workers

in the
vi.

organization?
How adequate is the reporting structure?

1.6 Research Hypotheses

H0: A well-defined organizational structure does not bring about
efficiency and productivity
H1:

well-defined

organizational

efficiency and productivity

structure

bring

about

H0: Clearly stated functions in an organization does not

eliminate duplication of functions.
H1: Clearly stated functions in an organization eliminate
duplication of functions.

1.7 Scope of Study

The research deals primarily with the study of the operation of
the organizational structure in Yaba College of Technology
(YABATECH), Lagos. It is critical analysis and evaluation of the
role of organizational structures of the establishment with the
view to determine their influence on the effective and efficient
management of the organization.

1.8 Limitation of Study

The study was limited due to restricted access to information
from the study area being both a government and educational
institution. Privacy policies of some of the departments forbid
them from providing some information that would have been
very useful for this study.

1.9 Significance of the Study

Having devoted time and effort on the study, the researcher
hope to achieve some hand marks at the end of the study. This
research is quite significant given the benefits of a good
organizational structure. Organizational structure helps to
determine how an organization should be run.
This research work will be of great benefit to many and will go a
long way in satisfying the needs of people like:
The

students-

After

their

graduation,

and

they

go

for

employments, they will be able to know and understand the

structure of the organization and what is required of them in
their given posts.
Future researchers- This research will as a guide to them that
want to research more on this topic or any topic that is related
to it. It will help to reduce the problem of inadequate source of
information or material.
General public- The work will serve as an eye opener, while
going for a transaction in an organization to be able to know
who and who to approach for the problem that brought him/her
to the organization.

1.10 DEFINITION OF TERMS

The researcher deemed it necessary to define or explain the
following terms used in this piece of work.
a.

MANAGEMENT: It is the utilization of both human and

materials resources effectively and efficiently in other to
achieve the set goals and objectives.

b.

ORGANIZATIONAL STRUCTURE:

It is a mapped out

patterns or a set out relationship between individuals

positions

and

responsibilities

and

authority

in

an

organization in achieving its objectives.

c.

DELEGATION: This is the process by which an individual

manager or supervisor transfer part of his authority or
power of act to a subordinate to do a particular work but,
without relinquishing the ultimate responsibility entrusted
to him by his own superior

d.

AUTHORITY:

This

is

the

legitimate

power

can

be

delegated. It is the right to do something.

e.

RESPONSIBILITY: This is the obligation to perform certain

function on behalf of the organization.

f.

SPAN

OF

CONTROL:

This

is

the

principles

of

an

organization which states that there is number of people

and functions that one person can supervise effectively.
g.

CHAIN OF COMMAND: The relationship between different

levels of employees.

h.

ORGANSATION:

REFERENCES

AKPALA.A. (1992) MANAGEMENT: An introduction and

Nigeria

perspective. Page 3

NWACHUKWU. C.C. (1988) MANAGEMENT THEORY and practice,

African Publishing limited, Onitsha, Nigeria

MINTZERBERG H. (1979): Structuring of organization Eagle

Worn Cliffs Prentice.

SHARIFZADEH, F, (1993). The consideration of models and

effectiveness theory in determining organizational
effectiveness. Iran management association journal no 11 page
41

MOGHIMI, S.M, (2001).Organization and management of

research event, second edition Termeh publication Tehran.

Buchanan, D., & Huczynski, A. (2004). Organizational

behaviour: An introductory text (5th ed.). Essex: Prentice Hall.

Mullins, J. (2005). Management and organisational behaviour

(7th ed.). Essex: Prentice Hall.