THE IMPACT OF ORGANIZATIONAL STRUCTURE ON ORGANIZATIONAL EFFICIENCY(A CASE STUDY OF INDORAMA PETROL-CHEMICAL ELEME, PORT HARCOURT RIVERS STATE).

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

According to Abtahi et al (2003) the key role of organization structure to improve productivity. This study is aimed to explore the structure forming elements (complexity, formality, and concentration) on one hand and human resources management efficiency on the other hand. Appropriate organizational structure, efficient procedure, safe instruments and equipment, balanced work environment and, above all competent and qualified man power are essentials that should be considered by managers to achieve optimal efficiency.

According to Taheri (2006) organizational structure in a real sense of word, has a remarkable effect and is inclusive.

According to Martinelli (2001) he argued that the type of organizational structure adopted by a firm will depend on the nature of the particular organization in question. The form which the organizational structure takes may be represented periodically by an organizational chart.

Nelson et al (2011) opine that departments in organizations can be categorized into various units such as   manufacturing, sales, marketing, advertising, and so on. They added that departments are connected to shape the organizational structure.

Quangyen et al (2013) argued that structure of an organization gives it the shape to carryout it purpose in the business environment.

Tamunebi(1996) sees organizational structure as a framework of role responsibilities that is created for co-ordination of the activities of people and units that work toward the achievement of responsibility is accomplish. The structure of organization eliminates fear, frustration, chaos, function and inability to pull in the same direction that would have arisen due to lack of an organogram. Considering what other writers have said about the topic, we shall add to knowledge by focusing on organizational structure and efficiency Indorama petrochemical company Rivers State.

1.2 STATEMENT OF THE PROBLEM

Most organization paid lip production services 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 play a vital role in directing the activities of organizational members towards goal attainment, some organization especially small one 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 re-examine his objectives, assign tasks and responsibilities, delegates authority, define level of authority and the activities of his helper this a structure is born.

The aim of this research work is to study the organizational structure and its impact on Organi-Indoroma Petrol-Chemical. Therefore question that will reflect this purpose are as follows.

1.3 OBJECTIVES OF THE STUDY

With the dynamic nature of business environment in the country, a systematic approach to determine structure as it affects the efficiency and productivity of a firm become very necessary.

Hence this study is aim at providing an insight into the extent to which organizational structure tends to impact on firm efficiency and productivity therefore the study is aim at;

1. Finding out if organizational structure will enhance better performance.
2. To determine how structure influences organization efficiency.
3. To examine the determinant of structure in organization.
4. Identifying problems &offering meaningful suggestion for effective organizational structure in indoroma petrol-chemical.

1.4 RESEARCH QUESTIONS

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

1. Will a firm perform better when structured?
2. Will organizational structure enhance workers performance?
3. Does tall structure enhance organizational efficiency?
4. Is there any relationship between efficiency of personnel cost reduction when structuring organization?
5. Does flat structure enhance organizational productivity?

1.5 SIGNIFICANCE OF THE STUDY

Considering the function of organizations especially that of Indorama petrol-chemical which are into poly-olefins production of a range of polyethylene and polypropylene products require the relevance of structure in the provision of conducive environment in which organization cannot be over emphasized.

The research project on completion will highlight the importance 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 the existing knowledge in management science, especially in the realizing of organization efficiency and productivity.

1.6 SCOPE OF THE STUDY

The scope of the study is limited to Indorama petrochemical, eleme, port Harcourt. It will only cover the area of organization structure and its impact on efficiency and productivity in an organization. A research to determine or assess organizational structure should cover a wild population to give an accurate and efficient production. But due to limit on the area of time &fund this research could not cover a wide area.

Furthermore, the near secrecy with the respondent answer to question makes it difficult to determine the impact of organizational structure activities in company.

1.7 LIMITATION OF THE STUDY

This study is affected by certain constraints such as time frame, inadequate material and financial resources, the near secrecy in the respondent answer to question.

1.8 DEFINITION OF TERMS

Cost Reduction: This 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 specification   (Tamunoebe1969).

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

Structure: This refers to the state of being well organized    or planned with all part, unit linked together.

Organizational Structure: Is the formal configuration between individuals and groups concerning the     responsibilities, allocation of tasks, and authority in the       organization.