ORGANIZATIONAL ARCHITECTURE AND EMPLOYEE EFFICIENCY: A STUDY OF SELECTED COMMERCIAL BANKS IN PORT HARCOURT, RIVERS STATE.
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ORGANIZATIONAL ARCHITECTURE AND EMPLOYEE EFFICIENCY:
A STUDY OF SELECTED COMMERCIAL BANKS IN PORT
HARCOURT, RIVERS STATE.
This research work investigated organizational architecture and employee efficiency of commercial banks in Port Harcourt. For the purpose of this study, two hypotheses were formulated. Based on the proposed hypotheses, a questionnaire was designed and three hundred and thirty (330) copies were distributed to the sample population, (cutting across six randomly selected commercial banks) of the total distributed copies of the questionnaire, only two hundred and eighty-six copies were returned, giving us a response rate of 86.7%. The two hypotheses that were formulated were tested with the aid of the chi-square statistical tool; they were both rejected at their null form. The findings revealed that; there is a significant relationship between structural flexibility and employee’s disposition on a task; there is a significant relationship between proper job allocations on a employees timelines in performing a task. Based on the findings, the researcher recommended the following amongst others; a professional body should be set by the commercial banks to handle issues arising from duties/role conflicts between and among employee; experts and professionals in the area of organizational development should be consulted for proper orientation on how to establish and manage effective architectural design; employees should be engaged on regular training so as to understand the dimensions of the architectural designs of their organizations. Given the present position, it is pertinent therefore, to conclude that organizational architecture impacts greatly on employee’s efficiency in commercial banks in Port Harcourt.
TABLE OF CONTENTS
Title Page i
Table of Contents vi
List Tables vii
List of Figures viii
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the problem 3
1.3 Purpose of the study 5
1.4 Research questions 5
1.5 Research hypotheses 5
1.6 Significance of the study 6
1.7 Scope of the study 7
1.8 Limitation of the study 8
1.9 Definition of terms 8
1.10 Organization of the study 10
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction 11
2.2 Nature of an organization 11
2.3 Organization architecture 12
2.4 Classical theory and formal organization architecture 18
2.4.1 The traditional organizational architecture concept 20
2.5 Architectural alternatives to the pyramid 23
2.6 Characteristics of effective organization architecture 25
2.6.1 Simplicity 26
2.6.2 Flexibility 27
2.6.3 Reliability 27
2.6.4 Economy 28
2.6.5 Acceptability 29
2.7 Differentiation and integrational architecture 29
2.8 The role of management in organizational architecture 30
2.9 The concept of employee efficiency 34
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 39
3.2 Research 39
3.3 Sampling procedure/sample size determination 40
3.4 Data collection method 41
3.5 Operational measure of variables 42
3.6 Data analysis techniques 43
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction 46
4.2 Response rate 46
4.3 Analysis of research question 52
4.4 Statistical testing of hypotheses 57
CHAPTER FIVE: DISCUSSIONS, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction 59
5.2 Discussions 59
5.3 Conclusions 61
5.4 Recommendations 62
5.5 suggestion for further studies 63
LIST OF TABLES
Table 2.1: Approaches to organizational architecture
Table 4.1: Questionnaire response table
Table 4.2: Structural flexibility and employee’s disposition on a task
Table 4.3: Conducive work environment and employees response to official assignments
Table 4.4: Proper job allocation and employees timelines
Table 4.5.: Role conflict and employee’s dedication to work
Table 4.6: Analysis on structural flexibility and employee disposition on a task
Table 4.7: Analysis on conducive work environment and employees response to official assignments
Table 4.8: Analysis on proper job allocation and employees timelines in performing a task
Table 4.9: Analysis on role conflict and employees dedication to work
LIST OF FIGURE
Figure One: Environment Factors and Employee Efficiency
1.1 BACKGROUND OF THE STUDY
One of the major challenges confronting management of business organizations today is that of achieving the corporate objectives of the organization. However, this cannot be attained if the organization does not have employees who are efficient and productive. Employee efficiency is the ability of an employee to work well and produce good result by using available resources within the shortest possible time. An employee’s efficiency is evaluated by his/her productivity resulting from effectiveness and commitment, Gibson, Ivancevich and Donnelly (1999). This efficiency of an employee can however, be enhanced or reduced by the presence or absence of a host of factors.
Managers often believe that good wages or salary and other factors of motivate such as incentives and fringe benefits or money rewards are capable of enhancing an employee’s efficiency. A British body committed to the improvement of employee productivity, efficiency and success, in a publication of October 9, 2006, says that beyond wages and motivational rewards, there are other ways to improve efficiency in a workplace. These include the following:
Ø Make it a fun place: according to them, when a work place is made lively with fun, workers attitude will be positive and they will want to come to work.
Ø Be flexible with shifts
Ø Learn what your employees need on a regular basis and make it available to them.
Ø Use time tracking, collaboration, and project management software to keep everyone “on task” and aware of what they are doing and what they will need to do next.
Ø Make people aware of the system and how they fit into it.
Ø Use flow chart to track the work flow in the work place.
The foregoing tends to indicate that no single factor can be said to be responsible for organizational performance. Scholars have researched on some factors, but this study will attempt to X-ray the extent to which organizational architecture can influence organizational efficiency.
Wesely and Yuki (1995), asserts that the value of organizational architecture cannot be over-emphasized, it creates and brings to the fore, the vision and mission statements of an organization, it specifics team roles/responsibilities as well as those of individual employees using stream of work, value, guide, principles etc. it also determines role of quality officers and individuals within it, it makes provision on percepts and guideline for promotion, it stipulates salary structures and modalities for salary increase. As an on-going change process, it draft and post workers, re-shuffle and re-assign workers, considering certain factors such as ability, interest, experience, effectiveness etc.
Particularly, organizational design could be said to be the “parent factor’ affecting an employee’s efficiency, Pitfield (1997). First, for an employee to work well, he /she must know the work.
Since organizational design provides the employee with the information on role performance, we see that it first, sets the employee on the course of his work by defining his role. Secondly, it is observed that an employee can only be perfectly efficient on what he/she knows had best to do and is equally interested in. again, since organizational design is concerned with assigning of roles and proper job fixation it therefore becomes admissible that it helps the employee to find a place of relevance in which he does what he enjoys doing and knows how well to do. This brings about happiness and felling of fulfillment which leaves the employee in an emotional state of enthusiasm which in turn results in high productivity.
Bozeman (1999), posits that “Naturally, an efficient employee will work his way to promotion in well-organized places of work”. With the help of a well-defined and well-laid organizational architecture, promotion for efficiency will motivate other employees to emulate their senior staff and bosses who, through the reward of efficiency, have climbed up the ladder of promotion.
1.2 STATEMENT OF THE PROBLEM
The labour market at present is plagued by scarcity and unavailability of competent and qualified personnel. Manages are faced with numerous problems in selecting staff that will fit into critical positions in their organizations. Over the years, workers have been employed to assume corporate responsibilities for which they are not qualified. For example, in our commercial banks today, engineers are employed a marketers while job seekers of the management sciences background are turned down on their job proposals in the same industry. This current trend has given prominence to a more technical problem which has resulted in a seeing stagnation even though the organization needs to go forward.
The problems faced by organizations are multi-dimensional; the organization itself is faced with the problem of decision as to firing, hiring, fixing or promotion, in order to maintain desired productivity and quality levels, the employees are faced with the problems of job satisfaction, role conflicts and efficiency, customers are faced with problems in the areas of stratification and future security.
Existing literature has revealed that the major challenging problems facing business organizations today are reflected in the following areas; employees are often inefficient, there is always the issue of role conflict, most employees are ignorant of the mission and vision statements of their organizations, while others do not even know the mode of operations and defined goals of their organizations, there are equally dissatisfactions among employees because they are employed or posted to do what they do not enjoy doing or has little or no skills. All these manifests as challenges that hinder the efficiency of employees in the discharge of their corporate duties; this has in turn affected the level of progress made in the business environment.
Evidently, these problems can only be eradicated if a proper and effective organizational architectural design is affected. It is against this backdrop therefore, that we intend to examine organizational architecture and employee efficiency of commercial banks in Port Harcourt.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to examine the extent to which organizational architecture influence employee efficiency in commercial banks in Port Harcourt, Rivers State. To be precise, this work will study the following:
1. The effect of structural flexibility on employee’s disposition on a task.
2. The effect of a conducive work environment on employee’s response to official assignment.
3. The effect of proper job allocation on employee’s timelines in performing a task.
4. The effect of role conflict on employee’s dedication to work?
1.4 RESEARCH QUESTIONS
To achieve the purpose of this study, the following questions to which the study shall endeavour to produce answers have been designed.
1. To what extent does structural flexibility of the organization affect employee’s disposition on a task?
2. To what extent does a conducive work environment affect employee’s response to official assignments?
3. To what extent does proper job allocation affect employee’s timelines in performing a task?
4. To what extent does role conflict affect employee’s dedication to work?
1.5 RESEARCH HYPOTHESES
In this study, the following hypotheses will be tested;
H01: There is no significant relationship between structural flexibility and employee’s disposition on a task.
H02: There is no signification relationship between proper job allocation and employees timelines in performing a task.
1.6 SIGNIFICANCE OF THE STUDY
The finding of this research work will be theoretically relevant in that it will stand to affirm or disaffirm other work in this area of study, thus it will validate the views of Pitfield (1997), Boleman (1999), Morabito, (1999), Zugaj and Schatten (2005) etc, all of the which holds a particular view about organizational architecture. This research work will equally contribute to existing literature in this area of study.
Also, the result of this research work will be of immense benefit to management and employees of commercial banks in particular, and business organizations in general by providing with an understanding of the need for effective planning of adequate organizational architecture and design that will guide them to achieving corporate goals.
1.7 SCOPE OF THE STUDY
This study shall cover some commercial banks within the Olu Obsanjo axis of Port Harcourt metropolis. The entire work is committed to studying the relationship between organizational architecture and employee efficiency. It studied the environment design of the commercial banks and how this affects employee’s efficiency.
The study is specifically directed at studying the senior management staff of the commercial banks believing than they are best disposed to providing the information needed by the researcher for his research analysis.
1.8 LIMITATION OF THE STUDY
The findings in this study are limited by financial constraint. Due to limited financial outflow, the researcher cannot travel far together for all necessary data for the work. Hence, the study is limited only to some commercial banks within the Port Harcourt City.
Time is another major factor that has slow down the speed and scope of this study. This is because the researcher cannot actually find time to make all necessary contacts as a result of other commitments, both academic and personal.
The attitude of bankers and the general public on information dissemination is essentially conservative. Hence, it is difficult to obtain certain necessary information which is termed ‘top secret” by the banks.
In the course of carrying out this study, several limitations were encountered. The reluctancy of respondents to provide information critical to the effective execution of this study constituted a serious limitation.
The scope of this study is equally another limitation as the findings generated may not serve as a general result concerning other commercial banks in other states.
Financial resources as well as time within the disposal of the researcher was equally a serious limitation since it made it impossible for the researcher to travel far in search of necessary data for the work.
Also, the choice of the chi-square statistical tool used by the research was equally a limitation since the result may have been better if more tools were employed in the analysis.
Finally, the interpretation of the findings of this research was also a serious limitation since this was restricted to the result of the tool used and understanding of the researcher.
1.9 DEFINITION OF TERMS
The term used in this study and their definitions are as follows:
This is the art or manner of structuring an organization through design or re-design by stipulating policies, procedure and mode, and by allocating people to positions.
This is the ability of an employee to work well and produce good result by using available resources within the shortest possible time.
The way an organization is made to function, especially in a special style desired by that organization.
1.10 ORGANIZATION OF THE STUDY
This study is divided into five chapters. Chapter one as a general introduction, it comprised of the background of the study, statement of the problem, purpose of the study, research questions, research hypotheses, significance of the study, cope of the study, limitation of the study, definition of terms and the organization of the study.
Chapter two is devoted to the review of related and relevant literature on organizational architecture and employee efficiency. Specifically, it covered the nature of an organization, organizational architecture, classical theory and formal organizational architecture, the traditional organizational architectural concept, characteristics of effective organization architecture, differentiation and integrational architecture, the role of management in organizational architecture and the concept of employee efficiency.
Chapter three focused on the research methodology. This was address under; research design, population of study, sampling procedure and sample size determination, data collection methods, operational measures of variables and data analysis techniques.
Chapter four focused in the presentation and analysis of data collected in the course of this research.
Finally, chapter five discusses the summary of the findings, conclusions and recommendations, as well as the suggestion for further studies.