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PROJECT TOPIC: IMPACT OF ORGANIZATIONAL STRUCTURE ON EFFECTIVE MANAGEMENT IN NIGERIAN BOTTLING WITHIN KADUNA METROPOLIS

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CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

The history of organization is probably as long as the history of mankind. Early organizations like families or groups of hunters evolved into tribes, kingdoms and empires. The need to survive in a hostile world, to carry out missions too great for a single person and to share scarce resources, are just some of the reasons for the creation of early organizations. Our modern society and its rapidly developing, complex technology, which results in the specialization of experts in very narrow fields, created and additional reason for the existence of organizations. Most products and services today are based on the integration of hardware, software, data and human expertise a combination which a single person usually does not fully master. Thus, organizations in the form of expert teams are created to complete in today’s markets.

Organizational structure is the management framework adopted to oversee the various activities of a construction project or other activities of an organization. A suitable organizational structure assists the project management team to achieve high performance in the project through gains in efficiency and effectiveness. Organizations projects require efficient and effective organizational structure in order to successfully accomplish various challenging tasks associated with rugged geographical terrain, environmental unfriendliness and complexity in the structural designs of the project. Organizational structure is the management framework adopted oversee the various activities of a construction project or other activities of an organization. A suitable organizational structure assists the project management team to achieve high performance in the project through gains in efficiency and effectiveness. Most organizations require efficient and effective single-unit boutique, each company must be structured in such a way that best serves its needs and makes the business a success. To classify their organization’s structure so that all employees can understand it, most companies prepare a graphic presentation called an organization chart. The chart clearly spells out the various divisions of the company, the roles the play, lines of responsibility and authority, decision-making positions, advisory roles (if there are any in the organization), and areas of responsibility, such charts allow employees at any level of the organization to immediately learn their place in the company, to whom they are responsible, and in turn, their own paths of responsibility. Organizations need structuring so that lines of authority along with individual duties and responsibilities can be understood by every company member.

Organizational structure represents the form of duties and activates (De Long, 2000). The effectiveness in organizations with a centralized structured and high level decision making is less common (Skiving, 1991). But in the organizations without a centralized structure, organizational structure results in more effectiveness (Rxckert 1985). A non-centralized structure communications and increases employees’ satisfaction and motivation. A centralized structure limits power to organizations’ high levels, so decreases the employees’ opportunity to grow and develop (Malholtra, 2000). The structure can affect the effectiveness or managers through the frequency of information among members, because the frequency of information facilitates knowledge distribution and sharing (Davenport, 1990).  

1.2       Statement of the problem

The site organizations structure is the management framework adopted to oversee the various activities of construction work. A suitable site organizational structure assists the project organizational structure in order to successfully various challenging tasks associated with rugged geographical terrain, environmental unfriendliness and complexity in the structural designs of the project.

According to Akpan and Chizea (2002), organizing is a major function of management. It entails the setting up, and equipping of appropriate organizational system, completed with operational procedures and guidelines with people assembled together with the sole aim of realizing a pre-determined objectives. For effectiveness, all within the system should know the purpose for which organization was established as well as their individual purpose and value within it. One of the avenues for facilitating this is the organizational framework structure. It is the responsibility of management at the highest level of authority to articulate long term corporate objectives, and simultaneously fashion out an organization structure best suited to the attainment of such goals. A well-structured system has the potential of being able to or at least reduces to a minimum level, confusion, indecision, back-passing, duplicated efforts and neglected duties inherent in human associations. It should be able to show clearly who is responsible to whom and who has authority over whom. It offers management with the mode through which it could coordinate, monitor and control all that goes within the organization.

Once the decision has been made to begin retail venture, it is necessary to plan its organizational structure in a way maximizes efficiency and profitability. All of the duties and responsibilities of those in the company must be identified, and lines of authority must be carefully delineated so that all members of the organization will understand what their job responsibilities are. By doing so, everyone knows who will report to whom, who the decision makers are, and which advisory personnel is on hand to assist in the decision-making process. No matter how large or small the operation, whether it is a major department store or management team to achieve high performance in the project through gains in efficient and effectiveness (Skiving, 1991).

Every business organization that is determined to succeed has to have an organizational structure in order to effectively and efficiently enhance its system for the promotion, distribution and sales of its products/services. In order to fully understand the situation, the problem has to be determined if organizational structure has any impact on an organization’s effectiveness.

To this end this study focuses on the effect of organizational structure on effective management system in an organization of under-developed country like Nigeria as a case study. Whereby, this study tries to bridge the gap in variation of both time and environment of which previous studies have been conducted.

1.3       Objectives of the Study

In a growing economy such as Nigeria, the structure can affect knowledge management processes through creation of patterns and repeated communications among organization’s members and also enhance creativity and effectiveness. The major objective of this research is to clarify the impact of organizational structure on management effectiveness which are being fractionalized into the following:

·         To develop a greater awareness of organizational structure.   

·         To know their impact on management effectiveness.

·         To offer possible alternative to the organization’s existing organizational structure.

1.4.1        Research Question

·         Does organizational structure have any impact on effective management system?

1.5       Research Hypotheses

H0 = Organizational structure does not have any impact on effective management system.

1.6       Significance of the Study

This study can support organizations (especially small and medium scale enterprises) in the country to enable them have a better sense of the importance of organizational structure and how it can help enhance and strategies/stire the organization the greater heights. As the world is at the merger of science and technology and which electronic media/means of communication has become vital in conducting our daily activities, and the environment in which we live is constantly changing rapidly.

Also, this research can help organizations (mostly small and medium scale businesses) in enabling them presenting an effective management by establishing the organizational structure of which can help to enhance profitability in the organization.

It will also provide the background for further research in regards to organizational structure and the role it takes to ensure roper effective management process for businesses. It can be found useful, also enable the students to have addition data for findings for the future. 

1.7       Scope of the Study

In an attempt to examine the impact of organizational structure on effective management in Nigerian Bottling within Kaduna metropolis.

1.8       Outline of the Study

This research consist of Chapter one, which introduces the study, Chapter two discusses the literature of the study which highlights the conceptual and theoretical framework for the research as well as the empirical studies. Chapter three show cases the method to be employed in collection of data and the analysis.

Chapter four, presents the analyzed the data, its result and the interpretation, while in Chapter five, summarizes the study, conclusions are being drawn and while recommendations are made from the findings of the research work.


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