The Importance Of Organizational Structure In Effective Management

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Organizational structure has been defined by Galbraith and Nathason as the segmentation of work into roles such as production, financial, marketing and so on.  The recombining of roles into department or division around function. This project work deals on the structure of an organization and how each department in an organization is been govern by structure. It comprises of five chapter from chapter one to five which deals on the importance and subordinate interact in one of the company the General Cotton Mills Onitsha, Anambra state.


Title page                                                                                i

Approval page                                                                 ii

Dedication                                                                       iii

Acknowledgement                                                           iv

Abstract                                                                          v

Table of content                                                              vi



INTRODUCTION                                                   1

1.1      Background of study                                              1

1.2      Statement of the problem.                                      5

1.3      Objectives of the study.                                          7

1.4      Research question                                                  9

1.5      Hypothesis                                                              10

1.6      Significance of the study                                        10

1.7      Scopes of the study                                                 11

1.8      Limitation of the study                                           12

1.9      Definition of term                                                    12

Reference                                                                        15



LITERATURE REVIEW                                          16

2.1      Structure                                                                        16

2.2      The traditional early perspective                           17

2.3      The contingency approach.                                    26

2.3.1    Environment and structure.                                26

2.3.2Technology and structure                                      29

2.4       Division of labour                                                  31

2.4.1Departmentation                                                    35

2.5     Type of structure                                                  41

2.5      History of general cotton mill limited Onitsha 50

Reference                                                                        52



RESEARCH METHODOLOGY                                 53

3.1                      Research design                                              53

3.2      Area of the study                                                    54

3.3      Population of the study                                          54

3.4      Samples and sampling procedure                          55

3.5      Validation of the instrument                                  57

3.6      Reliability of instrument                                         57

3.7      Method of data collection.                                      58

3.8      Method of data analysis                                         59

References                                                              61



DATA PRESENTATION                                          62



5.1      Discussion of the result/Findings                          80

5.2      Conclusion                                                              83

5.3      Implication (s) of the research finding                    85

5.4      Recommendations                                                  86

5.5      Suggestion for further research                             89

Reference                                                                        91

Bibliography                                                           92

Appendix                                                                 93

Questionnaire                                                         94













Every organization has objectives which has been u to achieve a goal. These objectives are identified through planning. This is simply became through planning management. Of organizations establish means of achieving objectives invariably, establishing a means for achieving these objectives becomes the prior occupation for management.

This bring them face to face with a major management function which is organization. The organization process is mainly aimed to achieve co-ordinate through the design of structure of task and authority relationship.

Meanwhile, the level of objective attainment generally determiner the extents of management effectiveness.  On the other hand, structure being a direct result of management function of organizing is the framework through which an organization accomplishes the task and responsibilities needed to attain its objectives.  This may be why Donnelly et al stated that “structure is a means for achieving the goal established planning.  Coming to the task that structure in the present day organization present complex relationship, is the need for people to organize their efforts on, later to attain certain objectives becomes more and more imperative. Hence organization structure defines the format allocation of work roles to identify the members to the organization. It establishes the line of authority for integrating and co-ordination activities.  According to Gabraith and Nathan son, organizational structure means. “The organization of work into roles such as production, financial, marketing and so on.  The recombining of roles into department or division around function and product, region or market and the distribution of power across the structure. We can therefore describe the functional structure in terms of dividing tasks jobs and delegating alternatives thus these provides some aspect of major challenges faced by management, management is expected to make the appropriate analysis that will help in designing of an effective organizational structure for any total organization.  A sound organizational structure activities to be directed, mottling, coordinating and control, in the overall outset of an organization and its members.

Therefore it becomes a sanctioned network of interaction and relationships between position, therefore functions and occupants and also a means through which management attempt to achieve organizational goals.  The foregoing emphasis the fact that structure is the result from organizational design.  It could therefore be regarded as a come variable 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 for 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 effectively organization. Unfortunately the answer provided by the decades of systematic research has proved this nation wrong organizations falls such a wide range of internal and external conditions that there cannot be a single structure or design that will prove successful for all.  

Thompson, has confirmed that ideal of stating that,  The best organizational structure is the one that test for the from situation at moment.  As this basic fact has become increasingly apparent, a new perspective on organizational design known as the contingency approach has taken forms.  Supports of this approach reasons that there is, in fact no best singe 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 cons version staff complexity.  The above facts, present a lot of challenges for modern managers.  Prescribing a successful organization at structural agreement not only with the external environment.  Unless, researches are therefore carried out I order to involved radiated recommendations are effective in practice, to that extent could management of such organization achieving their objective.


Recent change in the business environment of Nigeria companies have given rise to high level of uncertainties, they make adjustment in the organizational structure.  Since the structural variable could influence changes on the organizational effectiveness.  But unfortunately there is no formula for determining the structural dimensions that should be used in a particular organization so that problems to be addressed will include.

1.     Determining if a significant relationship exist between some of the Different dimension of organizations of organizational structure and managerial effectiveness.

2.     Whether, there are substantial different in the way different departments within the organization are being structured.

3.     If there is, does it correlate to the different levels of education acquired by subordinate with in these department.

4.     Is high degree of formulization capable of preventing inappropriate reaction in the work place?

5.     If yes, is there a significant between the proportions of those who believe that in the different department.

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The Importance Of Organizational Structure In Effective Management