ABSTRACT

This research examines the effects of organization structure on employees' performance, using First Bank of Nigeria Plc as a case study. Its objective is to determine whether First Bank Nigeria has an appropriate organizational structure and the extent to which that structure has contributed to employees' performance. The investigation used a questionnaire to gather information from members of staff of the bank, and 150 questionnaires were distributed and analysed. A descriptive survey design was adopted and a structured questionnaire was used to generate data. Descriptive statistics, correlation and t-statistics were used for data analysis and hypothesis testing. The results revealed that an effective organization structure has a significant impact on workers' performance, and that organization structure affects the performance of workers. The study recommends that having an organizational structure in place is very important for any organization, and that better communication and transparency be encouraged.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In modern society, most people spend their working lives in an organization of some sort and therefore have first-hand experience of corporate life. This study considers some of the findings and work that help to give a better understanding of the nature of organizations, including an examination of their structural aspects and of how these affect the performance of employees.

An organization is a collection of interacting and interdependent individuals who work towards common goals and whose relationships are determined according to a certain structure. This definition provides a useful starting point for an examination of organizations. Organization design is the overall arrangement of the various roles, processes and relationships in the organization. It is a means of accomplishing the overall goal, and structure is not an end in itself. Evidence from Nigerian commercial banks shows that the structure of an organization is a critical part of its design that can enhance or mar employee performance (Kanyangale & Eze, 2022).

The performance of employees is influenced by a number of factors, which are as follows:

• Clarity of goals and duties: Employees are motivated when the goals and objectives of the company are clear, so that everybody knows what the team is working towards and what he or she can contribute. When objectives and goals are stated, it is easier to select the most relevant actions for achieving them.
• Individual consideration: When adequate measures or safeguards for management control are assigned, variations in individual ability are taken into account.
• Flexibility consideration: The structure of the organization is flexible enough to accommodate changes that may occur in the course of the firm's activities.
• Unity of command: Each employee reports to, and is responsible to, only one superior at any point in time for each or all of the functions he or she performs. No employee is subjected to orders from more than one source. Evidence from a Nigerian professional services firm indicates that the chain of command and specialization have the greatest influence on worker performance (Awala, 2024).
• Span of control: The number of workers supervised by, and reporting to, an officer at any point in time is reasonable.
• Adequate resources: For an organization structure to be useful, adequate resources must be made available for each person to undertake his or her assigned tasks successfully.
• Evaluation criteria: There are known criteria and standards for measuring and appraising individual and departmental performance.
• Availability of systems to manage staff training and performance: For efficiency and improved performance, there must be well-defined processes for defining, creating, capturing and acting on knowledge. Training and development programmes enhance staff performance, and employees are motivated by the existence of a system for staff training.

Staff may fail to perform if the environment for learning and development is not conducive, and this will bring low productivity to the organization. Environmental conditions should therefore be considered. In the Nigerian banking sector, empirical work has linked organizational structure to job satisfaction and recognition among bank employees (Olajide, 2015).

1.2 Statement of the Problem

The various aspects of effective organization structure mentioned above have been examined in the work of classical management theorists, who produced a series of publications concerned with the structure of organizations and with power and authority within them.

The structure of an organization can adversely affect the provision of an environment that is conducive to learning and to the performance of skills. Various forces bring about changes in organization design, and such driving forces can cause dramatic changes that influence the effective conduct of business. These designs are, however, used organization-wide for various teams in an organization.

The problem associated with the impact of effective organization structure on employees' performance is a significant one, and it has generated differing opinions. Workers may quit their present place of work because of the lack of a proper working environment and fixtures, which affects their productivity and, in turn, the turnover of the organization. Dissatisfaction with their jobs leads such employees to look for jobs in other organizations where they believe better provision is made for the variables lacking in their former workplace. Research on Nigerian banks adds that improper organizational structure is a recognized cause of operational inefficiency in deposit money banks (Kanyangale & Eze, 2022).

Moreover, because of the improper positioning or location of plant and buildings, employees may work under stress, which adversely affects their health and productivity. This study is therefore designed to look into the impact of effective organization structure on employees' performance.

1.3 Objectives of the Study

The purpose and objectives of this research work are:

1. To establish the effect of the number of layers in the organizational hierarchy on the performance of workers in First Bank Plc, Nigeria.
2. To determine the effect of the nature of formalization on the performance of workers in First Bank Plc, Nigeria.
3. To investigate the effect of loose internal and external boundaries on the performance of workers in First Bank Plc, Nigeria.

1.4 Research Questions

In preparing the research questions, organizing the interviews and collecting the data to be used in testing the study's hypotheses, the following broad-based questions were established:

1. To what extent does the number of layers in the organizational structure affect the performance of workers in First Bank Plc, Nigeria?
2. What is the effect of the nature of formalization on the performance of workers in First Bank Plc, Nigeria?
3. To what extent do loose internal and external boundaries affect the performance of workers in First Bank Plc, Nigeria?

1.5 Research Hypotheses

The study intends to test the following hypotheses:

Ho1: Organizational structure does not have a significant effect on the performance of workers in First Bank Plc, Nigeria.

Ho2: The nature of formalization does not have a significant effect on the performance of workers in First Bank Plc, Nigeria.

Ho3: Loose internal and external boundaries do not have a significant effect on the performance of workers in First Bank Plc, Nigeria.

1.6 Significance of the Study

Strategic human resource development aims to produce a coherent and comprehensive framework for developing people. Much of this process is geared towards providing an environment in which employees are encouraged to learn and perform. The effective structure of an organization is the framework for getting things done, and for things to be done profitably this framework must be such that staff performance is encouraged, with room to grow for willing staff.

Times are also changing, and the law of averages no longer always applies. This is a bitter reality that many large corporations and firms experience today as they grapple with the organizational complexity generated by their products and functions. Earlier studies of Nigerian banks have commonly used correlation and regression techniques (Kanyangale & Eze, 2022). This study analyses the impact of effective organization structure on employees' performance using First Bank Plc, one of Nigeria's oldest banks, which traces its origin to 1894 (FBN Bank (UK) Limited, n.d.), as a case study of its structure with respect to staff performance. The research will also provide a better understanding of, and insight into, the relationship between the effective structure of a firm and the performance of its staff.

1.7 Scope and Limitations of the Study

The study encountered difficulties arising from financial and time constraints. The research was not done extensively but was limited to one organization, so it cannot be a complete representation of the entire corporate sector or give a concrete and totally complete view of the subject matter. It can only give an insight into the subject. It is hoped that the reader will consult other literature in order to gain a better understanding of the subject. A lot of research remains to be done on many more organizations, which would better represent the corporate sector.

1.8 Definition of Terms

Flexible Organization: An organization that may be arranged with core workers carrying out the fundamental and continuing activities of the organization, while contract staff are employed as required. It is also called a "core-periphery" organization.

Divisional Structure: A structure in which the organization is divided into separate divisions, each concerned with a discrete manufacturing, sales, distribution or service function and serving a particular market.

Process-Based Organization: An organization in which the focus is on horizontal processes that cut across organizational boundaries.

Decentralized Structure: A structure in which an organization, especially a conglomerate, decentralizes most of its activities and retains only a skeletal headquarters staff to deal with financial control, strategic planning, legal issues and sometimes personnel issues, especially those involving senior management across the group.

Job Analysis: The procedure of studying a job in order to identify its tasks, duties and responsibilities, and the knowledge and skills needed to perform it.

Task Analysis: Probably the most important form of analysis for training purposes. The technique focuses on the objectives of the tasks that people perform and provides an extremely flexible and useful method of analysis.

Training Design: Training designed to bring about changes in people's behaviour. The success of such an endeavour is determined by how effectively those changes are instituted.

Skill Analysis: The procedure of identifying the specific skills that a task or job requires and comparing them with the skills that employees currently possess.

1.9 Organization of the Study

This study, like other academic research in the faculty, is organized into five distinct chapters:

Chapter one focuses on the introduction to the study, the statement of the problem, the objectives of the study, the research questions and hypotheses, the significance of the study, the scope and limitations of the study, and the definition of terms.

Chapter two is the literature review. It covers the literature review and the theoretical framework of the study, including the works and opinions of authors on the impact of effective organization structure on employee performance.

Chapter three contains the methodology of the study. It is the blueprint of the project.

Chapter four deals with the presentation and analysis of the data gathered in the course of the study.

Chapter five is the last chapter. It summarizes, makes recommendations and concludes the study.

REFERENCES

Awala, F. (2024). Organisational structure and employee performance: A study of Ernst & Young Nigeria. International Journal of Research and Innovation in Social Science, 8(7), 881–896.

FBN Bank (UK) Limited. (n.d.). Our history. https://www.fbnbank.co.uk/our-history/

Kanyangale, M. I., & Eze, S. U. (2022). Organisational structure as a strategic enabler of commercial bank employees in Nigeria. Academic Journal of Interdisciplinary Studies, 11. https://doi.org/10.36941/ajis-2022-0086

Olajide, O. T. (2015). Effects of organizational structure on job satisfaction in the Nigerian financial sector: Empirical insight from selected banks in Lagos State. NG-Journal of Social Development, 5, 96–108.