The topic of this study is the Importance of Organizational Structure in the Effective Management of a Business. The researcher adopted the descriptive survey design, the researcher used both the primary and secondary sources of data in the course of the study. The primary data was sourced through the instrument of questionnaire and oral interview while secondary data was sourced through text books, magazines, journal and internet. The population of the study is three hundred and eighty nine, which the sample size is one hundred and thirty-three. The findings revealed among others that organizational structure has a great impact in the effective management of organization. The researcher recommended among others that organizations should Endeavour to have well structured organization, in order to achieve the set up objectives.


Title Page

Certification -       -        -        -        -        -        -        -        -        i

Dedication -          -        -        -        -        -        -        -        -        -        ii

Acknowledgement -       -        -        -        -        -        -        -        iii

Table of Contents -        -        -        -        -        -        -        -        iv

Abstract -   -        -        -        -        -        -        -        -        -        vii


1.1            Background to the Study        -        -        -        -        -        -        1

1.2            Statement of the Problem        -       -        -        -        -        -        3

1.3            Research Questions -     -        -        -        -        -        -        4       

1.4            Objective of the Study   -        -        -        -        -        -        4

1.5            Statement of the Hypotheses - -        -        -        -        -        5

1.6            Scope of the Study        -       -        -        -        -        -        -        5       

1.7            Significance of the Study           -      -        -        -        -        -        5

1.8            Limitation of the Study -         -        -        -        -        -        -        6

1.9            Operational Definition of Terms -     -        -        -        -        6




2.1     Importance of Organization    -        -        -        -        -        7

2.2     Types of Organizational Structure -  -        -        -        -        8

2.3     The Design of Organizational Structure -   -        -        -        12

2.4     Consequence of Structural Deficiency  -     -        -        -        17


3.1     Research Design - -        -        -        -        -        -        -        19

3.2     Population of the Study  -       -        -        -        -        -        19

3.3     Sample and Sampling Techniques-   -        -        -        -        19

3.4     Instrumentation - -        -        -        -        -        -        -        20

3.5     Method of Data Collection  -   -        -        -        -        -        21

3.6     Method of Data Analysis        -        -        -        -        -        -        21


4.1     Data Presentation -        -        -        -        -        -        -        -        23     

4.2     Test of Hypotheses -      -        -        -        -        -        -        30

4.3     Discussion of Findings - -        -        -        -        -        -        37




5.1     Summary -  -        -        -        -        -        -        -        -        39

5.2     Conclusion -        -        -        -        -        -        -        -        39

5.3     Recommendations         -        -        -        -        -        -        -        39

5.4     suggested Areas for Further Studies -         -        -        -        -        40


          Appendix I

          Appendix II         






1.1            Background to the Study

The purpose of the structure is the division of work among members of the organization and the co-ordination of their activities so they are directed towards the goals and objectives of the organization.

An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to some one common aim.

Organization are a number of clustered entities the structure of an organization is usually set up in one of a variety of style dependent on their a objectives and ambiance the structure of an organization will determine the modes in which it shall operate and will perform.

Organizational structure allows the expressed allocation of responsibilities for different entities ordinary description of such entities is a branch, site, department, workgroup and single people. An organizations structure is the set of formal, the planned relationships between the physical factors and personal required for the performance at these function. In the words of Mullins (2007: 564). Organization structure is the pattern of relationship among pattern of relationship among positions in the organization and among members of the organization.

Birkinshaw (2001) said that organizational structure is never the whole story, it is just a ay of dividing responsibilities among executive. It is meaningless, unless supported appropriate system and a consistent culture. There is also need for a continual receive of structure to ensure that it is the most appropriate form for the particular organization and in keeping with the growth and development there is likely to be of particular importance for the way large organizations. Drucker (1999) it is the correct design of structure that is of most significance in determining organizational performance.

Sound organizational structure activities are directed towards co-coordinating and controlling the overall outset of an organization and its members. Therefore it becomes a sanctioned network of interaction and relationship between positions, functions and occupants and also a means through which management attempt to achieve organizational goals. The emphasizes the fact that structure is the result from organizational design. Thus, it is far from surprise that it has been the subject of intensive study. Firms wishing to slow their entire organizational set up usually do so by preparing a company manual containing policy and objective chart for major and minor organizational unit.

Job deceptions and specifications and standard procedures. Their potion of the structure present in the chart shows two types of dimension. The first is the vertical dimension which is cut into a number of levels of authority known as service level. The second is the horizontal dimension which is cut into functions or groups of functions. The structure of an organization affects not only productivity and economic efficiency but also the morale and job satisfaction of the workforce. Getting the structure right is the first step in an organization. Structure should be designed, therefore so as to encourage the willing participation of members of the organization and effective organizational performance.

1.2            Statement of the Problem

An organizational structure is primarily set up for the purpose of promoting co-operation and facilitating the exercise of executive leadership. It permit the retention of co-ordinated thought and action, very through organizational relationship becomes more complex with growth. The type of organizational structure depends on the nature of the particular organization. The form which the organizational structure takes may be represented periodically by an organizational chart. Based on the significant of the organizational structure the researcher wish to investigate more on the impact of organizational structure in effective management of a business.





1.3            Research Questions 

On every research project there should be questions which will enable the project to be realistic. The questions are as follows:

1)    What are the factors in the organizational structure that could affect managerial effectiveness.

2)    Is there a problem in the structural design of the department within the organization.

3)    To what extent do the level of education of the subordinates influence the way a manager structures his departments.

4)    What is the link between the above variable and the managers degree of effectiveness in meeting up to the objectives he is expected to achieve.

1.4            Objective Of The Study

The study is to examine the relationship among some elements of organizational structure and management effectiveness of a business organization, therefore it will like to:

1)                To determine whether there is a problem in the structural design of the departments within the organization.

2)                To find out if the level of education of subordinates influence the way a major structure is departmentalized.

3)                Determined whether variables have the same or the difference affects managerial effectiveness in different departments  in an organization.

1.5            Statement Of Hypotheses

(1)             Environment, size, strategy, technology are not a determinant of an organizational structure.

(2)             Organizational structure does not help to increase assets,      Turn-over and profit.

(3)             The level of education of the subordinates does not influence the way a manger structures his departments. 

1.6            Scope of the Study

Due to the nature of this research, it will not be feasible to study the effect of organizational structure in the effective management of a business.

1.7            Significance of the Study

Proper organizational structure in the organization will reduce role conflicts and avoid stress to managers, it will also specify span of control. It will encourage job specialization in the organization and easy job analysis. The research will also help managers during job evaluation and performance appraisal. The study will help many corporate organizations and government institutions to know what type of structure will suit them and also help them to manage the organization effectively.

1.8            Limitation of the Study

Some difficulties were noticed in getting information listed in the project.

Financial Constraints: The cost involved in research project is very high considering the state of the economy.

Time constraints: The most important thing to not is the time limitation combining lectures, assignment and also coupled with term paper making, makes getting materials for the research project difficult.  

Unavailability of textbooks and journals: The information gathered in writing research project must come from several textbooks and journal, but most of these textbooks were hard to find and the ones found were outdated editions.  

Secrecy of information: Most of the information used in this research work were gotten from the case study. Due to principles of the organization.

1.9            Operational Definition of Terms 

Organizational structure: This is the pattern of relationship among positions in the origination and among members of the organization

Management: The process of dealing with or controlling thing or people to achieve a particular goals.

Hierarchical: It is something that is organized in terms of rank, or where rigid distinctions of power are identified and complied with.  

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