THE IMPORTANCE OF ORGANIZATIONAL
STRUCTURE IN EFFECTIVE MANAGEMENT
A CASE STUDY OF GENERAL
COTTON MILL ONITSHA
THE IMPORTANCE OF ORGANIZATIONAL
1.1 BACKGROUND OF THE STUDY
Every organization have objectives which has always been to achieve a goal. These objectives are identified through planning. This is simply because through planning, management of organization establish means of achieving objectives invariably, establishing a means for achieving these objectives becomes the prior occupation for management. This brings theme face to face with a major management function which is organization. The organization process is mainly aimed to achieve co-ordination through the design of structure of task, authority and relationships. Meanwhile, the level of objective attainment generally determines the extent of management effectiveness. On the other hand, structure being a direct result of management function of organizing is the framework through which an organization accomplished the task and responsibilities needed to attain its objectives. This may be why Donnelly et al (2004) stated that “structure is a means for achieving the goal established in planning. Coming to task that structure in the present day organization presents, the need for people to organize their efforts in order to attain certain objectives becomes more and more imperative. Hence organization structure defined the format for allocation of work roles to identify the members of the organization. It establishes the line of authority for integration and co-ordination activities. According to Gabraith and Nathanson, (2009) organizational structure means “the organization of work into roles such as production, financial, marketing and so on. The combining of roles into departments or divisions all in an effort to achieve set objectives. We can therefore describe the functional structure in terms of dividing tasks, jobs and delegating authorities thus, this provides some aspects of major challenges faced by management, management in expected to make the appropriate analysis that will help in designing an effective organizational structure.
A sound organizational structure will aid directing, co-ordinating and control, in the overall outset of an organization and its members. Therefore it becomes a network of interaction and relationships between positions, therefore functions and occupants and also a means through which management attempt to achieve organizational goals. The foregoing emphasizes the fact that structure is the result from organizational design. It could therefore be regarded as a guide without which a managerial team will not function effectively. Thus, it is far from surprise that it has been the subject of intensive study which has been adopted in trying to design effective organization structure. Firstly it was the classical theorists who passed the ideal of “one best way for structuring effective organization. Unfortunately the answer provided by the decades of systematic research has proved this notion wrong. Organizations face a wide range of internal and external conditions that there cannot be a single structure or design that will prove successful in all. Thompson (2007), has confirmed that idea by stating that, the best organizational structure is one that can adjust to tackle any situation at hand. At this basic fact has become increasingly apparent, a new prospective on organizational design known as the contingency approach has taken form. Supports of this approach reason that there is, in fact not best single structure. People and environment in the above factor function with the key dimensions of organization structure, which include departmentation, chain of commands, span of control, centralization, conversion staff complexity. The above facts, present a lot of challenges for modern managers. Prescribing a successful organizational structure that agree adjusts to agree with both internal and external environment. Unless, researches are therefore carried out inorder to involve radiated recommendations, they will not be effective in practice.
Brief History of General Cotton Mill Onitsha
The company was incorporated in 1964 as a private company under the companies ordinance (AP 37 to manufacture printed cloths. It came into full operations in 1973 after new equipment were acquired for the spinning/weaving mills to complement the printing process thus becoming a full integrated textile factory. General cotton mill Limited facilitates include 39640 spindles, 1,238 looms and finishing plant for bleaching, drying and printing which include 2 rotary printing machines. The company since its inception maintains two service agreement. It is technically supported by Texas cotton mill limited of Hong Kong and by UAC of Nigeria Plc, for it commercial services. They supply prudent management resources sustain over the years. The authorized share capital of the company is N400,000 share of 50 kobo each i.e. N200,000 only N189,583,330 share are issued and fully paid.
1.2 STATEMENT OF THE PROBLEM
Overtime, organizational structure has been proven to be of basic importance to every organizations existence. Authorities and responsibilities will be clearly defined, every task assigned to a person and the person held responsible for how well or badly he or she performs the job. Duties and tasks are shared into departments and units with a manager overseeing the affairs of such departments and units. These departments must all work harmoniously towards the achievement of set objectives (Udoye, 2011). The problems that are encountered therefore, are problems of duplication of tasks and repetition of process. The importance of organizational structure in management effectiveness cannot be utilized if the best organizational structure is not adopted. Most cases haphazard and unobjective structures are due to management neglect of the importance of organizational structure. The study therefore will seek to highlight deeply, the importance of organizational structure in order to draw the attention of management to it. The study will also identify different patterns of organizational structure and their characteristics so that management can be well informed towards choosing the bets structure that will suit the operations of general cotton mill, Onitsha.