THE IMPACT OF ORGANIZATIONAL STRUCTURE IN NIGERIA.(A STUDY OF NIGERIAN NATIONAL PETROLEUM COMPANY, PH ONNE ELEME, PORT HARCOURT)

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The quest for effective and efficient means through which an organization can achieve its pre-determine objective of efficient and productivity has led to the propounding of various theory, principle, concept etc. all geared toward accomplishing set objectives 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 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. 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 efficiency and 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.

There are the problems of the study are as follows:

1. Poor ways of managing organizational structure in NNPC PH?
2. Lack of organizational structure reduces enhance the efficiency and productivity in the firm.
3. Does not enable the firm to respond quickly to rapidly changes in term of targeted objective.
4. Employee do not perform better because personnel activities are not structured.

Thus this research work will attempt to empirically examine the impact of organizational structure in Nigeria.

1.3 PURPOSE OF STUDY.

The main objective of the study is to examine the impact of organizational structure in Nigeria. The specific objectives are as follows:

1. To Find out if organization structure will enhance better performance.
2. To determine how structure influence organization efficiency.
3. To examine the determinant of structure in organization.
4. Identifying problems and offering meaning suggestion for effective organization structure in NNPC PH.

1.4 RESEARCH QUESTIONS

This research work is aim at providing some insight into the follow question.

1) Will a firm perform better when structure?

2) Will organizational structure enhance workers performance?

3) What are the major determinants or organizational structure?

4) Is there any relationship between efficiency of personnel cost reduction when structuring organization?

1.5 SIGNIFICANCE OF THE STUDY

Considering the function of organization especially that of NNPC PH 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 NNPC PH. It will only cover the area of organization and its impact on efficiency and productivity. A research to determine or asses’ organization structure should cover a wild population to give an accurate and efficient production.

1.7 LIMITATION OF THE 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.