Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 43

Assessment of organizational structure and its impact on performance in

case of Tigray water works construction enterprise


A RESEARCH PROPOSAL SUBMITED TO DEPARTMENT OF MANAGEMENT
IN PARTIAL FULFILMENT OF THE REQUIREMENT IN PARTIAL BA DEGREE
IN MANAGEMENT

BY: Yiketel Bekalu


ID NO 165989/2006
ADVISOR: - MEBRAT AREGAWI (MBA, Lecture)

MEKELLE UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT

MEKELLE, ETHIOPIA

January, 2016
ACKNOWLEDGMENT

First of all thanks to our almighty God, for his indescribable gift and kindness. I would like to
express our greatest and gratitude to our advisor Mebert Aregawi(MBA) for continuous
Advise and suggestion. Her academic insight and constructive reflection have been very
helpful .I would like to express our great thank to those individual who contribute to the
completion of this study. As last but not least, I would like to thank our friends for this b
supports
LIST OF TABLE

Table 4.1 respondents profile 25

Table 4.2 formation of organizational structure 27

Table 4.3 integration of organizational structure 30

Table 4.4 employees communication in organizational structure 32


Abstract

In this research the researcher try to deals with the assessment of organizational structure in the
TWWCE . the objective of the study was also to asses organizational structure and its impact on
performance . the company employee participated in decision making destining and redesigning was
low . Whether its structure effective or not in the organization . there are many problems that face the
organization to success in its performance . among which design problem, of its project shortage of
well educated engineers and project not finished in the schedule time . the target population of the
study was the employees of the TWWCE organization and interview from top management and some
employees in the company . as ample size of 42 of 241 employees was taken. The relevant data was
taken collected through survey questioner by simple random sampling techniques to give equal
chance of to employees.

Major finding revealed that the the problems of employees limited in involvement of decision
making process designing and redesigning of organizational structure which have negative influence
in the performance .

Structural suitability and employees communication in the orginaztonal and also some
recommendation that might achieve effectiveness efficiency are presented
Chapter one

1. INTRODCTION

1.1BACKGROUND OF THE ORGINAZTION


Tigraywater works construction enterprise is located in micelle town. Principally established to
carry out construction of civil works. The main activity of enterprise includes the construction of
dam’s irrigation, road building etc.

The enterprise has been established in 1994 E.C in order to full fill the demand of the region in
the construction sectors especially in water and related works its specific object were to provide
adequate water supply irrigation structure road and housing both in terms of quality and
quantity.

It is construct big project through the region and to give supply indirectly for the neighboring
region.

VISSION
 A spire to see that the people has a health and free from poverty by 2017 E.C. through
supplying adequate safe and clean water in sustainable and fair distribution

MISSION
Through intensive but sustainable, development and better management water resource
and schemes targeting to meet the demands of clean water for drinking and irrigation
with equity to everyone in the region.


 VALUES
 Quality is our identity
 We will create schemes with least cost and high benefit.
 Our schemes testimonies to our competency
 We will be stowing a contaminated and sufficient water resource to the new
generation.

1
1.2 Background of the Study
A sustainable organizational structure may assist the project management team to achieve high
performance in the project through gain in efficiency and effectiveness. Specific objectives are set
to be achieved at the end of each project. The objective may vary from one to another (Tukel,
1996.)

Organizational structure defines how activity such as collection, coordination and supervision are
directed toward the achievement of organizational aim (internet).

Organizational structure refers to how job task are formally divided and coordinated. It tells how
specialized and non- specialized task are performed. the frame work of the organization the
structure were in the job of each every person defined described and coordinated to achieved the
organization goal (Robbins ,2000). Organizational is a stable frame work that depicts how the
human and non-human elements in it arranged and grouped. It is based on organizational mission,
goal and objectives. The number, diversify and complexity an organization goal should play an
important role in decision about how it should be structured. Non-human element includes
position, job duties, line of authority, formal pattern of activity and relationship that connect the
various consistent part of the structure such as hierarchal level, division department etc. (gales
2003.)

Tigray water works construction enterprise is one of the leading and responsible for all water
related construction in the region. The water related product is mainly give services for the
community with the future plane of the art construction facility to gather with the technologically
standardized. The fundamental restructure to enterprise management system can be turning point
for the overall success the company. On the other hand the growing demand construction leads
the company develops its efficiency in all aspect. In this regard starting from using the latest
technology machine system to construct will equipped construction many efforts have be done?
Tigray water works construction enterprise provides adequate supply irrigation structure broad
and

Housing both in terms of quality and quantity to local as well as all over the region. In order to
achieve this goal, they incorporate technology to provide solution for their community needs. All
this are must be cosine organizational structure to the enterprise. Hence the researcher will focus
on on the enterprise performance. To conduct this study the researcher will use qualitative,
quantitative descriptive ways of analysis. The main purpose or motive of this study is to conduct
the research, the researcher to develop greater awareness of organizational structure, their impact
organizational effectiveness to offer a possible alternative to Tigray water works construction
enterprise of organizational structure. due to the extent to which the assessment of organizational
structure and factor affecting
1.3 statement of the problem
Every organizational can be seen as an enclosed system is people and process that work together
towards achieving some defined goals [senior and swailes,2010,p.4]. However, there are many
comports that are making an organization. Among this copouts senior and swails 2010, p.5 name
of formal sub system such as management, strategy goal structure, operation and technology and
informal subsystem such as leadership police and culture. Organizational structure refers to the
division of labor as well as the pattern of coordination, communication, and work how and formal
power that directs organizational activates, an organizational structure reflects its culture and
power relationships (Stephenand Marry Ann, 2000).

The coordination that exists between the departments directly affects the performance of the
overall activity. In Ethiopia, due to many reasons such as limited skill or poor knowledge about
organizational structure performance and other reasons less attention is given for many aspects of
organizational structure function in many government as well as private organizations.

The Tigray water works construction enterprise confronts problems regarding effectives which
are attributed to the following factors. The first problem is clarity of overall structure of the
organization, second the organization also have multiply departments that performs similar
activity. Third, the communication problem the top management and employees in the
organizations structure.

So, that the focus of the researcher will be aimed to identify the problem of organizational
structure of Tigray water works construction enterprise concerning organizational structure and
also assess the effectiveness and efficiency of the organization.

1.4 Research questions


In order to conduct this study the following key questions was be raised in the management of
employees of the organization

1. How organizational structure effort is organized in the company?


2. What does the formation of the structure of the company?
3. How the company does structure its departments?
4. What is the impact of the organization structure on its performance?

1.5 Objective of the study

1.5.1 General objective


The general objective of the study is to examine the organizational structure of Tigray water
works construction
1.5.2 Specific objectives
 To analyze how the organization structured effort is the organized in the company.
 To analyze how the activities are grouped and integrated in to units.
 To identify the effect of organizational structure to its performance
 To assess information flow between employees and management.

1.6 Significance of the study


This study is to investigating the different problems of organizational structure in the study area.

It has serve as bases for other researchers who study on the related topics. The research paper may
contribute to the Tigray water works construction enterprise understanding about organizational
structure and its impacts on performance of the company.

1.7 Limitations of the study


In conducting the study the researcher faced some constraints like shortage of time and shortage
of financial, skill or knowledge and etc.

1.8 Scope of the study


In terms of the study, this research exclusively focuses on management and non- management
staff of the company. The company is located in places at Mekelle which is principally
established. But the researcher was limit the study to mekelle main office because short period of
time and like of finance. The conceptual scope of the study is lake of experience, knowhow about
the study of the organization, challenges of respondent. Methodologically concept of the study the
researcher describes the organizational activity includes employees and management.
CHAPTER TWO

2. Review of related literature

2.1 Bank ground of TWWCE

2.1.1 Meaning of organizational structure


Organizational structure involves arrangements of actives and assignment of personnel to these
activities in order to achieve the organizational goals. It is away by which various parts of an
organization are tied together in a coordinated manner and it is illustrates the various
relationships among various aspects of organizational operations. (N.KUMAR AND R. MITTAL
2001:94).

Robbins cited in Mishra (2003:361), stated organizational stricter refers to how job risks are
formally divided grouped and coordinated. It tells how specialized and non-specialized tasks are
performed. The frame work of an organizational is the structure, where are performed. The farm
work of an organizational is the structure, where in the job of each and every person is defined,
described and coordinated to achieve the organizational goals.

The control, command division of work and placement of jobs are considered under the
organizational structure.

As per Steven. L (2005:428)organizational is process of combining the work, which individual or


groups have perform with the efficient, necessary for its execution, that duties so performed
provide the best channels for the efficient, systematic, positive and coordinate application of
available effort. A good organizational structure is needed so that:

A. Each individual in the organization is assigned a role, responsibility and necessary


authority. Each person who assigned to an activity much knows his position, his role and
his relationship with others. He is further responsible for efficient execution off his role
and duties and his given the authority to do so.
B. The activity of all individual are coordinated and integrated into a common patter in
order to achieve the organizational objectives. Organization is needed for the purpose of
integration of divers’ activities in a cohesive manner.
C. The optimum use of human skill and efforts is achieved. Half the work is completed when
you know what you have to do and how you have to do it. A good organization does that.
It helps in smooth operations and smooth flow, thus avoiding bottlenecks, idle time and
idle machines. A good organization requires the right person for the right job and this
avoids misapplications of human resource thus resulting in optimal utilization of
employee efforts. This would ensure efficiency in the functioning of the enterprise.
Organizational structure is the form arrangement of jobs within an organization. When
managers develop or change the structure, they are engaged in organizational design, a
process that involves decisions about six key elements work specialization,
departmentalization, chain of command, span of control centralization and
decentralization and formalization (Robins p, 2006:234).
2.1.2 Concepts of organizational structure
An organizational structure defines how job, tasks are formally divided, grouped and
coordinated (Robbins and Timothy, 2009:565).there are many different opinions and definition
on organizational structure. Structure in one sense is the arrangement of duties use for the work
done. This is the best represented by the organization chart (Jackson and Morgan, 1982).

In other sense, “structure is the architecture of business competence, leadership, talent,


functional relationships and arrangement” identified structure as the basis for organizing to
include hierarchical levels and span of responsibility, roles and position, or mechanisms for
integration and problem solving (Wolf, 2002).

Structure defined as the relatively enduing allocation of work role and administrative
mechanisms that creates a patent of interrelated work activities and allows the organization to
conduct, coordinate, and control its activities (J. child, 1972:21-23).

Lawrence and Lorsch (1967) describe structure as “the technique in which the organization is
differentiated and integrated”. Differentiation is related to the scope in executives act, whereas
integration is described in such a way that every member of the organization including
managements will do their best to achieve organizational goals.

Similarly, an organization is a set of elements in interaction, organized level and decision making
units (Martinelli, 2001:68-73).

Organizational structure is a set of methods through which, the organizational divided in to


district task and then create a harmony between different duties (Mintzberg 1979).

Organizational structure “is the formal system of task and reporting relationship that controls,
coordinates, and motivates employees so that they corporate to achieve an organizational
goals” (under down, 2012).

Organizational structure directs the competence of work, the enthusiasm of employees and
coordination among the top management and subordinates for flow of plans and goals in the
organization to sketch the future plan (Herath, 2007: 895-901).
The most important components of organizational structure include formalization, centralization
and control. Formalization measures the extent of which an organization users rules and
procedures to proscribe behavior. The nature of formalization is the degree to which the
workers one provided with rule and procedures that deprive versus encourage creative,
autonomous work and learning (Nahm, et al; 2003:281-287).

The organizational structure should be designed to ensure that individuals and departments that
need to coordinate their efforts have lines of communication that built in to the structure.
Companies many use various organizational structure for communication purposes. Large
companies have many levels of management. Therefore, the most effective way to
communicate is from top of the organization down (Wolf, 2002).

2.1.3 Essential features of good organizational structure


Besides to the basic elements of the organizational structure there are essential features that
must be recognizes while developing the organizational structure (Amrik and Kumar, 2003:132).
The essential features involves:-

Clear lines of authority: - there must to be clear like of authority mining form the top to the
bottom of the organization. Clarity of line is achieved through delegation of steps from the
highest executive it the lowest worker having the least responsibility and on authority.

Adequate delegation of authority: - every person in the organization must get adequate
authority to meet this obligation according to situation. Authority is vested in the top most
executive and is delegated to his subordinates where ever necessary to meet their obligations. If
sufficient authority is not delegated, the top most executive or the personal vesting authority
faces various problems such as bottleneck in decision-making delay in decision implementation,
pressure on higher level, and less motivation to subordinates. This all problems hamper the
growth of the organization.

Minimum managerial levels: - as for as possible, the managerial levels in an organizational


should kept minimum. The greater the number of levels, the larger chain of command and the
longer the time traveling the message up and down. Though, the number of levels is not certain,
yet it serves as a guideline.

Unity of direction:-every person in the organization should be directed only by one boss as for
as possible relating to a single major function. This is based on the principle of specialization and
unit of direction. Multiplication of direction may create confusion and may lead to conflict.

Application of ultimate responsibility: - the superior at higher level is ultimately


responsible for the acts of his subordinates. The authority floes from superior to subordinate
along with the responsibilities. The higher level manager is, here by, not relieved of his
responsibilities the acts delegate to the subordinates. He is responsible for his own duties of his
subordinates.

Span of control: - refers to the number of subordinates, a manager can directly supervise.
There is a limit on this number but this limit cannot applied universally because several factors
such as nature of superior and that of subordinates, nature of work, type of planning, degree of
decentralization, and communication techniques affects span of control.

Simplicity: - the organizational structure should be designed as possible taking in to account


the essential networks but leaving the no room for confusion and ambiguity. Too many levels of
combinational channels, or committees, or multiple of command or too much coordination often
creates more problems rather to solve them.

Flexibility: - organizational structure should be flexible enough so that it can be adjusted


according to changing condition in future. In other words, it should be designed in such a way
that it may fulfill not only the present needs but also along future needs of organization because
changes in the organization is must due to various environmental changes and other compelling
reasons if structure is not flexible, it will be very difficult incorporate to change without much
difficulty.

2.2 basic element of organizational structure

2.2.1 Chain of command


The chain of command is an unbroken line of authority that extends from top of the organization
to the lowest echelon and clarities who reports to whom (Amrik and Kumar, 2003; 135). On the
other hand, Robins p, in (2003:237) says, “You can’t discuss the chain of command without
discussing three other concepts. Authority, responsibility and unit of command”.

Additionally, Amrik and Kumar, (2003:235) authority refers to rights inherent in a managerial
position to give orders and expect the orders to be obeyed. To facilitate coordination,
managerial position is given a place in the chain of command, and each manager is given a
degree of authority in order to meet his /her responsibilities.

The unit of command principle helps preserve the concept of unbroken lines of authority. It
states that person should have one and only one superior to whom he/she is directly
responsible. If the unit of command is broken, a subordinate might have to cope with conflicting
demands or priorities several superiors. Without unit of command conflicting demands and
priorities from multiple bosses can create problems (Robbins p, 2003:237).

2.2.2 Departmentalization
A well structured organizational structure, with its will formed hierarchical levels, creates the
need for a viable departmentalization. It denotes how job activities are clustered together. More
specifically, the entirety of the tasks exists in the organizational structure divided into smaller
numbers, which are placed into respects departments with strong emphasis upon an effective
coordination of activities (Kreiter, 2001).

Specialization is grouped together to form a job is to be performed by a department, the next


step of specialization is combine similar activates into a group. Departmentalization is a grouped
of specialization into specific functions, different function are grouped on a similar basis, for
example engineering , accounting, personal, etc. Are the important functions which are grouped
on separate departments known by their respective functions. Departmentalization is use in all
type of organizations according to their objective and functions. For example a university has
different departments such as academic, administrative, teaching, etc. similarity; other
organizations have different type of departments based on their objectives and activities. The
administration (Mishra. M.N 2003:361).

Once you have divided jobs up through work specialization, you need to need these jobs
together so common tasks can be coordinated. The basses by which jobs are grouped together
are called departmentalization. One of the most popular ways to group activities is by function
performed. A manufacturing manager might organize his or her plant by separating engineering,
accounting, manufacturing personnel, and purchasing specialist in to common departments. Of
course, departmentalization by function can be used in all types of organizations. Only the
functions change to reflect the organization’s objectives activities (Sudan. A and Kumar. N,
2003:134).

Functional departmentalization- groups jobs by functions performed. This approach can be used
in all types of organizations, although the function changes to reflect the organizations purpose
and work.

Product departmentalization- groups jobs by product line. In this approach each measure
product area is placed under the authority of a manager who responsible for everything having
to do with that product line.

Geographical departmentalization- groups jobs on the bases of territory or geography such as


southern, mid-western, or northwestern regions or may be U.S, European, Latin American Asian
Pacific Regions.

Process departmentalization- groups jobs on the bases of product or customer on plow. In this
approach work activities follow a natural processing flow of products or even of customers
finally.

Customer departmentalization- groups jobs on the bases of customers who have common need
or problems that can best be meet by having specialist for each (Robbins p.2003:434).
2.2.3 Formalization
Formalization is the degree to which organizations standardize behavior through rules
procedures, formal training and related mechanisms. In other words formalization represents
the establishment of standardization as a coordinating mechanism (Mcshane. L. 2005:434).

Formalization refers to the degree to which jobs within the organization are standardized and
the extent to which employee behavior is guided by rule and procedures. If a job is highly
formalized, then the person doing that job has little discretion as to what is to be done, when it
is to be done, and how he or she doe

2.2.4 Span of control or span of management


s it (Robbins. P, 2003: 240).

Span of control refers to the number of subordinate, a manager can directly supervise. These are
limit on the number of subordinate but this limits and not is applied universally because of
several factors. Such as natural of superior and that of a subordinate, nature of work, type of
planning, degree of centralization, communication technique are affect the span of control
(Sudan A, and Kumar N, 2003;132).

Span of control is important because, to a large degree, it determine the number of level and
managers an organization has. The wider and larger the span, the more efficient the
organization (Robbins and Timothy, 2009:569).

A manager directs managements. In a wider of control, of manger have many subordinates


under him. In a narrow span of control a manger has fewer subordinates under him. Obviously,
the numbers of subordinates that can effectively be manager for supervision and delegation of
authority would be finite and depend up on a number of factors. Some of those factors are
specified by Amrik and Kumar, (2003:135) as follows:

A. Similarity of function: - if the subordinates are involved in the same or similarity of


activities, then it is possible for the manager to supervise more subordinates. Since the
problems that may arise would be similar in nature, this would be easier to handle.
Conversely, if these subordinates are involved in diversified operation, the situation
would be more complex and hence the span of control would be narrow.
B. Complexity of function: - if the operations that the employees are performing are
complex and sophisticated and require constant supervision, then it would be more
difficult for the manger to manger too many employees and hence a narrow, span of
control would be desirable.
C. Geographical closeness of employees;- the closer the subordinates are to each
other in a physical location the easier it will be for the manager to manager more
employees.
D. Direction and coordination; - the span of control would also be determined by the
degree of coordination required both within the unit in other departments. If the units
need continuous directions and extra time of managers in coordinating these activities,
the fewer subordinates would be better supervised.
E. Capacity of subordinates; - subordinates, who are trained, professionally develop
and experienced, need little supervision in discharging their duties. In such situations,
more subordinates can be effectively supervised. These subordinates can further be
providing them with “standing plans” which are applicable in repetitive actions and
routine recurring problems, thus requiring less supervisory assistance.
F. The working staff of the manger: - if the manger has a supporting that is equally
skilled in handling situation, then it would be possible to manger a wider span of control
because the responsibilities of supervisors would be shared.
2.2.5 Work specialization
Work specialization is the degree to which tasks in an organizational are divided in two separate
jobs also known as division of labor (Robins, 2003:3240.

Specialization is another component of organization structure. Each and every part of the whole
work is done by specialized people. The total work is broken up into small parts and the
responsibility of performance of each part is assigned to experts. This makes people more
specialized and active there may be subdivision of each part to make it more specialized. Each
step is completed by, skilled labor. The specialized of whole activity is possible by breaking the
total work in to separate parts, sub-divisions and steps. Specialization makes highly sophisticated
tasks can utilized through specialization. The skill of the employees increase by repetition.
Complex and sophisticated operations are performed easily by acquiring skills nd specialization.
It is a well- known fact that the level of specialization increase along with the technological
development. Specialization has increase performance and employee’s satisfaction (Mishra, M.n
2003:361).

Most mangers today see neither work specialization as neither obsolete nor an unending source
of increase productivity. Rather, mangers recognize the economies it provides in certain types of
jobs and the problems it creates where it’s carried too far ( Robbins and Timothy, 2009;566).

For demonstrated that work can be performed more efficiently if employees are allowed to
specialize. Today we use the term work specialization or division of labor to describe the degree
to which tasks in the organization are subdivided into separate jobs. The essence work
specialization is this rather than an entire job being done by one individual, it is broken down
into a number of steps, each step being completed by a separate individual. In essence,
individuals specialize in doing part of an activity rather than the entire activity. In most
organization’s some task require highly developed skilled; others can be performed by the
untrained. If all workers engaged in each step of, say, an organization’s manufacturing process,
all would have to have skills necessary to perform both the most demanding and least
demanding jobs. The result would be that, except when performing the most skilled or highly
complex tasks, employees would be working below their skill level. And since skilled workers are
paid more than unskilled workers and their wages tend to reflect their highest level of skill, it
represents an inefficient usage of organizational resources to pay highly skilled workers to do
easily tasks (Amrik and Kumar, 2003:130).

2.2 6 centralization/ decentralization


In some organization top managers make all the decision and lower level managers and
employees simply carry out their orders. At the other extreme are organizations in which
decision making is pushed down to the managers who are closest to the action. The former
organizations are centralized and the letter decentralized (Robins, P, and 2003: 239).

Centralization means that formal decision making authority is held by small group of people,
typically those at the top of the organizational hierarchy. Most organizations being with
centralized structures, because the founder makes most of the decisions and try to direct the
business toward his or her vision. But as organizations grow, they diversify and their
environments become more complex. Senior executives are not able to process all the decision
that significantly influences the business (steven. L. 2005: 433).

Centralization describes the degree to which decision making is concentrated at a single point in
the organization. If top managers make the organizations key decisions with little or no input
from below, then the organization is centralized. In contrast the more that lower level
employees provide input or actual decisions, the more decentralization there is. Keep in mind
that the concept of centralization- decentaeralization is relative, not absolute that is, an
organization is never completely centralized or decentralized. Few organizations could function
effectively if all decisions were made by only a select group of top managers; nor could they
function if all decision were delegated to employees at the lowest levels (Robins, P. 2003:239).

2.3 purpose of organizational structure


For over 2000 years, organizations have been structured as means of getting large numbers of
people to work toward common goal be it building a pyramid or fighting a war. Organizational
structure provides the systems architecture through each the essential tasks of an enterprise are
sub divided and grouped to create the process, decision centers, and a behavioral network that
carries out enterprise strategies. For a centuries an organizational structure has been
represented the boxes and lines an organizational chart. The tangible symbol of position and
reporting relationship throughout an enterprise such approaches to organization have been
essentially hierarchical in structure, which thus affected human behavior because structure can
make it easy or difficult for people in separate work units to take and work with one another.
Structure affected the way people size up situations, the way they interact with others, what
they value and believe to be important, time horizon, and even management style a
phenomenon called differentiation, which we describe later in the chapter. Largely during your
lifetime organizational designs have shifted to be less hierarchical structured, yet grouped and
linked in ways that promote creativity and continuous improvement behaviors rather than
conformity. Organizational design is the process managements go through to create meaningful
structures, decision and information networks, and governance systems. Organization design
provides for:-

1. The dividing and grouping of tasks


2. Network to convey information
3. A structure for locating decision centers, or authority
4. Process for coordination, control, and conflict resolution and
5. The means to link key work units with appropriate external stakeholders such as
customer and suppliers. Designing an organization involves deciding how the enterprise
should be managed and led as much as it does creating structures to subdivide and
allocate tasks (Cutis. W, and phillip. L, 2001:87)

2.3.1 Benefits of organizational structure


According to Amrik and Kumar, they specifies some benefits of the organizational structure on
the book of organizational behavior and it says that while there are many different structure
that organization can adopt, depending up on the type of organization including whether it is a
service organization or a manufacturing organization, a well structure organization has many
benefits some of the beneficial outcomes of a good organization are:

1. A good organization facilities attainment of objectives through proper coordination of


all activities.
2. In good organization, the conflict between individual over jurisdiction are kept to a
minimum.
3. It eliminates over lapping and duplication of work duplication only exists when the work
distribution is not clearly identified and the work is performed in a haphazard and
disorganized way
4. It decrease likelihood of run a rounds occur when we do not know who is responsible
for what and we are sent to wrong people for getting some work done.
5. It aids in wage and salary administration. A fair and equitable wage and salary schedule
is based upon the premise that the jobs with similar requirements should have similar
benefits.
6. Communication is easier at all levels of organizational hierarchies, since the line of
communication and the flow of authority is quiet clear in the organizational chart, the
inter communication is both clear and easier and it eliminate ambiguity.

2.3.2 Objective of organization structure


 The economic and efficiency performance of the organization and the level of resource
utilization.
 Monitoring the activities of the organization
 Accountability for the of the work under taken by groups and individuals members of the
organization and individual members of the organization.
 Coordination of different part of the organization and different area of work
 Flexibility in order to respond to future demands and developments, and to adapt
changing environmental influence.
 The social satisfaction of members working in the organization (Mulins. J, 1996:332).

2.4 Extremes of organizational structure


The organization structure is influenced by several factors such as corporate strategy, size,
technology and environment. There are two extremes of the organizational structure. The real
structure lives in between these two extremes depending upon the determining factors. These
two are mechanistic and organic extremes, stated by Mishra M.N 2003:365-66 as follows:-

Mechanistic: - extrme related to the component of the organizational structure, example, and
specialization, and departmentalization, chain of command, span of control, centralization and
formalization. A high degree of this component has been include under mechanistic factor
employees perform their jobs as per the routine system, they do not have the highest degree of
mechanistic approach. The communication is hierarchical it mean that the higher authority
instructs the lower authority has no power to question the order and suggests its own measure,
it is a form of bureaucratic structure, it is a highly a dictation structure of organization.

Organic: - under organic extremes the components of an organizational structure are more
loosely used and more freedom is given to the employees who take more interest in their job
performance rather than rule observation. It has a cross hierarchical and cross functional team
work. The components of an organizational structure are at a low level. Example, there is low
specialization, low departmentalization, fewer chain of command, wider span of control,
decentralization and less formalization. Upward, downward and lateral communications are
practiced under the organic structure, the employees are empowered to participate in the
decision making process. It is a highly democratic form of organizational structure.

2.5 factors influencing organizational structure


Mishra M.N (2003: 366-367) stated that the organization structure lies it in between the
extremes that is mechanistic and organic, as per the factors influencing the structure. The
important factors influencing the structure are corporate strategy, size, technology and
environment.

Corporate strategy
The corporate strategy has an important impact on the structure. The dictatorial strategy of an
organization requires a bureaucratic structure. The mechanistic structure is loosened under the
democratic strategy. A structure is developed to achieve the objectives through the application
of corporate strategy. The structure is determined according to the strategy. The hierarchical
structured depend on the overall strategy at the corporate and departmental levels. Structure
and strategy are closely linked if the is any change in the strategy, the organization structure also
changed. It is therefore, essential to make a structure which can adopt itself according to the
changes in the strategy. The strategy frame works are imitation, innovation and cost
minimization. Imitation does not mean the limitation of other strategies. It refers to following
its own previous strategy. The pervious strategy helps to find out the suitable strategy for
minimization cost and maximization revenues. The scientific researchers are followed and
utilized in the organization. The innovation strategy refers to the changes in the existing strategy
for the better. The technological developments are included in the strategy. Cost minimization
refers to the curtailing of unnecessary expenditure. Innovation strategy deals with low
specialization, low centralizations and standardization. Plainly, it is stated that the innovation
strategy helps to maintain the mechanistic structure, where in control specialization;
formalization and centralizations are at a high level. The imitation strategy has a max of
mechanistic and organic strategy.

Size: - the size of an organization has important bearings on the organizational structure. A
large organization cannot perform effectively with simple or bureaucratic structure. It to adopt
the matrix structure. An organic structure is suitable for a small organization. The mechanistic
approach is more suited for a big organization. Specialization, departmentalization, formalization
and decentralization are required for big organization. A wide span of control and functional
command are also needed for large organization. The imitation strategy, where in the mixes of
organic and mechanistic approaches are adopted, is more suitable for large organizations. The
structure should have more adoptability as the increases. The number of factories and offices
may expand as per the need of person, place and position.

Technology: - developments influence the structure. A sophisticated technique a mechanistic


approach, where in high specialization rigid departmentalization, clearly chain of command,
narrow span of control and high formalization are needed. Decentralization increases innovation
and technological development. Technology refers to how input is transferred into output and
how it is applied in all the areas of management, via finance, marketing, personal, and
production. Routine tasks are related with departmentalization and formalization. Centralization
is useful only routine technology. Innovative techniques, decentralization is essential.

Environment: - the environment is the reactive results of various internal and external factors
influencing the behavior of people in an organization. The behavior of managers, employees,
customers, distributors’ government agencies and outsiders decides the specific form of the
environment. It is not static, but is changing form to rime and place to place according to the
needs of people and organizations the environment influences the behavior of people of an
organization and is also in turn influenced by their behavior. A situation has a great role to play
in shaping the environment. Uncertainty in the environment influences the adoption of a
particular structure. The capacity, complexity and volatility of the environment influence the
organizational structure.

2.6 classification model of organizational structure


The classical model refers to table traditional systems of organizational .It has been formulated
by max Weber ,F.W. Taylor Rolfe .Rogers and others ,Among all the theories under the classical
model the important theories are bureaucratic model and scientific management model and
these two models very clearly stated by Mishra M.N.(2003,368) as follows;

2.6.1 Bureaucratic model


The first person who put bureaucracy in a model forms was Max Weber, who in his book, the
theory of social and economic organization has expressed bureaucracy as an ideal organizational
stricter. He emphasized that it is a Weber has division of labor, the specialization, hierarchy,
abstract rules, impersonal relationship and qualifications.

Division of labor: - works divide into different parts and each part is given to a laborer who
interested in the job and has the competence to perform that promotion of the job. Employees
are obligated to perform their functions. The division of labor is done systematically with a set of
authority and responsibility.

Specialization: - The division of labor creates specialization, as performing the same type of
job makes the employees more competent. It is essentially to accomplish the goals of an
organization. Highly specialized functions make employees satisfied as they get the feeling of
being distinct. The responsibility easily carried out as the specialized job is well defined. No other
member infringes up on the rate of the specialized job. Specialization increases the speed of
work and increases the productivity.

Hierarchy: - a bureaucracy based on hierarchy which defines the scope of authority that can
be exercise by super ordinate on the subordinate. The success of an organization depends on
the principle of hierarchy. Max Weber has pointed out the bureaucracy provides the controlling
structure that is essential for any organization. It is a natural order and a human desire to
control others. The authority control is given only to those people who have adequate
restraining power over themselves. People enjoy hierarchy and are motivated to work hard to
go to up in the hierarchical order. Hierarchy of achieving the organizational goals. It has the
capacity of increasing employees, satisfaction and organizational performance.
Abstract rules: - rule and regulation are formulated to manage the bureaucratic organizations.
It is said that rules are gods for the employee working in a bureaucratic system. Going beyond
rules make employees punishable although it increase productivity and the performance. Rules
are permanent whereas, employees may come and go. It provides perpetual succession in the
organization. Rules ensure uniformity and coordination of functions. The difference in task
performance and uncertainties are narrowed down by rules.

Interpersonal relationships: - an official relationship is more prominent in a bureaucracy


than a personal approach to the employees. A bureaucracy has a formalistic impersonality
without love and affection, hatred and passion and without personal sentiments and
attachment. An impersonal attitude is developed to make the organization a healthy body there
is no influence of society and individuals on the corporate decision in an organization. There is
no prejudice and preference.

Qualifications: - the bureaucracy develops only on qualification and recognition of merit.


Employment evolves a lifelong career and the employees should be promoted only on merit and
qualification. This provides stability and control. Qualification provides definite promptness of
decisions. Rational and impersonal decisions are possible if the selection, promotion and
business decisions are based on merit. The job decides the nature of merit.

2.6.2 Scientific management model


Frederick w Taylor, a mechanical engineer, has sponsored scientific management structure. On
the basis of his observation of the working pattern and investigation, he concluded that there is
enough scope for managing the functions and people scientifically. He empirically studied their
activities and initiatives. On that basis, he designed the organizational structure to get optimum
efficiency. The rules and regulations stipulated under the bureaucracy are scientifically modified.
Individual activities as well as corporate activities are systematically studied. Practical rather
than theoretical findings were utilized for creating scientific structure. This was done by
replacing the rule of thumb, by developing the elements of man’s work. By scientifically
selecting and training the workman, by using principles of science, in corporation and by division
of work. The principles scientific management includes reducing inefficiency, increasing
systematic management of man and materials and also the use of scientific management in all
human activities.
CHAPTER THREE

3. METHODS AND PROCEDURES


This study was be describe areas including participants, sampling techniques, Data gathering
instruments, procedures, methods of data presentation and analysis.

3.1 Research design


The purpose of this study was to investigate the current organizational structure the researcher
will use descriptive methods.

3.2 Description of the study area


Mekelle is the capital city of Tigray national regional in federal democratic republic of Ethiopia.
It is located on the northern parts of Ethiopia.

Tigray waterworks construction enterprise is located in this city

3.3 Population sample size and sampling techniques


As subject of the study both management and non-management staffs consider the total
population is 241 employees from this a sample size of 47 (13%) of employees was taken as
representative portion of the population. The researcher used to get this sample size by the
following formula the total populations of 241. n=N/1+N (e) 2

Where this formula:-n= sample size

N=number of population

E=error

n =241/1+241 (0.13) 2=47


It is necessary to used stratified. Sampling method since the population is heterogeneous in terms
of their management and non-management departments and so the proportionate stratified
sampling is great role because it gives the sample opportunity to select from different groups.
Indicate strata a here later sample random sampling based used because it provides equal chance.
Finally lottery method used to distribute the questionnaires. The data type used quantitative .

3.4 Types of data collection


Primary data: - The primary data collected through questioners and interview guide to gather data
from management of the organization. Through both open ended and closed ended question. Open
ended questions are questions that need more explanation for the given topic. E.g. wh-question.
Closed ended questions are question type they need either yes or no response.

Questionnaires will be the maine data gathering instruments. This method was enable the research
to guide the informants when they get out of the concepts.

Secondary data: - The secondary data collect from the organizations records, reports and other
reference materials.

3.5 Procedure
The current research was select stratified sampling. The researcher was used both questionaries’
and purposely interview technique further more in the researcher was be assess by the time
schedule of the research. To check the reliability, the researcher was cross-check the data by using
various techniques.

3.6 Method of Data analysis and Presentation


After data are obtain from primary secondary sources using questionnaires, interview, guide and
document method they systematically complied presentation analysis tabulated and interpret
using descriptive statistics in terms of percentage, table and figure classified in terms of their
nature qualitative and quantitative interpretation and finally writing down all what researcher
have gotten. The researcher was be analysis gathering from questionnaires is that collect from
respondent about researcher topic and the depending the response the researcher was generalize
that topic or title and from the interview the researcher analysis the depend on the current
responds. So that collects the manager or concerned body concluded the study.
4. Chapter Four

Data presentation, analysis and interpretation

4.1 Introduction
This chapter deals with analysis and interpretation on the basis of data gathered through
questionnaire and interview. In order to obtain information for the study a total (forty-seven)
questionnaires were distributed to employees to Tigry water works construction enterprise. The
employees (respondents) randomly selected from each statement of department of employees.
Among these questionnaire, 42 were correctly filled and returned used for analysis and
interpretation of data here. The analysis and justification of the finding from the information
were approached by summarizing the relevant question and respective responses for a topic on
an issue and then further analyzed sequentially.

Tables, percentage and figures were used to present interpreted data using descriptive method.

Table 4.1 Respondent’s profile

No Items Number %

1 Sex

Male 20 48%

Female 22 52%

Total 42 100%

2 Age

18-24 8 19%

25-34 29 69%

35-44 4 9.6%

45-54 1 2.4%

55 and above 0 0
Total 42 100%

3 Educational level

Below Grade 10 0 0

10/12 Grade complete 8 19%

10+3 (Diploma) 9 21.4%

BA/BSc 20 47.6%

MA/MSc and above 5 12%

Total 42 100%

4 Years of experience

Below 1 year 10 23.8%

1-3 years 9 21.4%

4-6 years 10 23.8%

7-9 years 6 14.3%

10 and above 7 16.7%

Total 42 100%

5 Individual got relevant experience with his/her


current occupation

Strongly Agree 11 26%

Agree 26 62%

Disagree 2 4.8%

Strongly disagree 1 2.4%

Neutral 2 4.8%

Total 42 100%

Source: questionnaire survey 2016

Table 4.1 indicates sex, age, educational level; work experience and individual got relevant
experience with current occupation.
According to the above table in item number 1, out of the total 42 respondents, 20(48%) were
male and the remaining 22(52%) were females. From this one can understand that were females
employees was greater than males employees in the organization.

Regarding the age in item 2 of respondents, 8(19%) was between 18-24 years old. Next 29(69%)
of the respondents were within the range of 25-34 years, from 4(9.6%) were from 35-44 years.
1(2.4%) were from 45-54 years and finally there were no 55 and above of age. This implies that
the respondents were youngster who is productive of the organization.

As can be seen in table 4.1 item number 3, with regard to educational back ground of the
respondents, no respondents were grade 10, 8(19%) had 10 or 12 grade completed, 9(21.4%)
had 10+3 or diploma, the majority is 20(47.6%) had their first degree and finally 5(12%) had
MA/MSc and above. Hence the majority 29(69%) of the respondents were diploma and degree
Table 4.1, item 4, shows years of employee’s experience. Accordingly, 10(23.8%) of respondents
had below 1 year of service, 9(21.4%) had between 1-3 years’ service, 10(23.8%) had an
experience in between 4-6 years, 6(14.3%) had experience in between 7-9 years and 7(16.7%)
had an experience 10 and above years.

Hence, the organization holds employees who had almost all levels of experience in the
organization. Therefore, one can inter that it was possible to get all levels of information for
employees with similar years of experience.

In table 4.2, item 5, indicates individual got relevant experience with current occupation,
11(26%) of the respondents strongly agree, 26(62%) the majority of respondents that agree, on
the other hand, 2(4.8%) are respondents claimed that neutral with in statement. Thus, it is
possible to see that large number 37(88%) of respondents agreed. Only few portion of
employees were disagree with the statement.

4.2 Formation of organizational structure


Structure is the architecture of business competence, leadership, talent, functional relationships
and arrangement in its from identified structure as the basis for organization to include
hierarchical levels and span of responsibility, roles and position or mechanism for integration
and problem solve (Wolf, 2002).
Table below indicates formation and conformity of organization structure. Table 4.2 conformity
of organizational structure

Table 4.2 Conformity of organizational structure


No Description Strongly agree Disagree Strongly Neutral Total
agree disagree

N % No % No % No % No % No %
o

1 Do you believe 9 4.4 27 64.2 5 12 1 2.4 0 0 42 100


TWWCE
organizational
structure goes to
gather with its work
process?

2 The organizational 6 14. 26 62 9 21.4 1 2.4 0 0 42 100


stricter is suitable 2
to achieve vision
and mission

3 The organizational 2 4.8 29 69 10 23.8 1 2.4 0 0 42 100


structure influences
the positive
implication
behavior of the
company

4 Do you believe that 2 4.8 13 309 18 42.8 6 14.3 3 7 42 100


organizational
structure of
TWWCE negatively
affect its
performance?

5 The organization 1 2.4 15 35-6 20 47.6 5 16 1 2.4 42 100


allowed the
freedom to work
according to their
own process
alternative

Source: Questionnaire survey 2016

As it be clearly observed from item 1 of table 4.2 9(21.4%) of the respondents are strongly
agree, 27(64.2%) the majority of respondent claimed that they agree, on the other hand 5(12%)
of the respondents are disagree with this statement. Thus it is possible to see that only very two
portion of employees are dissatisfied with the organizational structure goes to gather with it’s
the work process.

As it is indicated in the above in item 2, 6(14.2%) of the respondents are claimed that strongly
agree, 26(62%) the majority of respondent claimed that agree with in the statements that
organizational structure is suitable to achieve vision and mission of the company. As it was
shows 9(21.4%) of respondent disagree with in the statements. And finally, 1(2.4%) of the
respondents said that strongly disagree and none of them are neutral. Hence, from the
respondents the researcher can conclude that the majority of employees are satisfied with the
suitability of organizational structures to achieve its objective and goals.

As it can be seen in the above item 3, 2(4.8%) the respondents are strongly agree, 29(60%) the
large number of respondents claimed that they agree with the statement 10(23.8%) of
respondents claimed that they are disagree, 1(2.4%) remained strongly disagree with in the
statements. Hence, from the data it is possible to inter that the organizational structure positive
influences the implication behavior of the organization.

Table 4.2 item 4, as it was show 2(4.8%) of respondents strongly agree, 13(30.9%) the
respondents they are agree, 18(42.8%) the majority claimed that they are disagree with the
organizational structure of TWWCE negatively affects its performance. Hence, from the
respondents the researcher can say the majority of employees its organizational structure was
positively of employees its organizational structure was positively affect, on the performance.

As can be seen in the above item 5, 1(2.4%) of respondents strongly agree, 15(35.6%) the
respondents claimed that agree, 20(47.6%) the majority of the organization allowed the
freedom of work according to their own process alternative. As it was show, 5(16%) of the
respondents are strongly disagree, and finally, 1(2.4%) of respondents was neutral with the
statement.

According to the majority, 25(63.6%) of respondents in the organization not allowed the
freedom to work according to their own process alternative for the employees.
4.3 Integration of organizational structure
Organizational structure is process of combining the work, which individuals or group have to
perform with the facilities necessary for its execution, that duties so performed provide the best
channels for efficient, systematic, positive and coordinate applicable effort. Each individual in
the organization is assigned a role, responsibility and necessary authority. Each person who
assigned to an activity much knows his position, his role and his relationship with others. The
activities of all individual are coordinated and integrated in to common pattern in order to
achieve the organizational objectives organization is needed for the purpose of integration of
driver’s activities in a cohesive manner. Optimum use of human skill and efforts is achieved. A
good organization requires the right person for the right job and this avoids miss application
human resource thus resulting in optimization of employees efforts. This would ensure efficiency
in the functioning of the enterprise Steven. L (2005:428).

The table below indicates how role, authority are assigned and how works are integrated in the
organization.

Table 4.3 integration of organizational structure


No Description Strongly Agree Disagree Strongly Neutral Total
agree disagree

N % No % No % N % No % No %
o o

1 There is clear line of authority 3 7.1 9 21.4 22 52.4 6 14.3 2 4.8 42 100

2 Do you believe that does the 4 9.5 18 42.9 15 35.6 2 7.1 2 7.1 42 100
organizational structure have
positive impact on
performance?

3 Do you believe that 6 14.3 11 26.2 20 47.6 3 7.1 2 4.8 42 100


employees in the
organization are assigned
with in a clear role?

4 “The activities of all individual 3 7.1 20 47.6 14 33.4 1 9.5 1 2.4 42 100
are concentrated and
integrated in common
patterns”

Very high High Medium Low Very low Total

5 To what extent the 4 9.5 17 40.4 14 33.4 7 0 7 16.7 42 100


activities that are carried
out in your departments
related to each other?

Source: questionnaire survey 2016

As it presented in the above table 4.3 of item 1, 3(7.1%) of the respondents were strongly agree,
9(21.4%) of the respondents agree with a segment clear role of authority, 22(52.4%) the
majority of respondents claimed that disagree with the statements, 6(14.3%) of respondents
claimed they are neutral. Hence, from the data it can be seen that the 28(66.7%) of employees
are dissatisfied in clarity of line of authority in the organization.

As it can be seen the above item 2, 4(9.5%) of respondents claimed that they strongly agree,
18(42.9%) of the respondents agree with the statement that organizational structure have
positive impacts on performance of the organization, 15(35.6%) of the respondents they were
disagree with the statement, 2(4.8%) of the respondents claimed that they were strongly
disagree and finally, 3(7.1%) of respondents were neutral. Thus, it is possible to see that the half
and above 20(50%) of the employees are satisfied with the organizational structure have
positive impacts on its performance.

As it can be seen with the item 3, 6(14.3%) of the respondents were claimed that they are agree
with the statements, the majority of respondents, 20(47.6%) were dissatisfied with their role,
3(7.1%) of them were strongly disagree and finally, 2(4.8%) of respondents were neutral with
the statement. It is possible to see that the majority, 23(54.7%) of the employees are dissatisfied
with in the proposition of employees in the organization assigned clear role.

As can see in item 4, 3(7.1%) of respondents were strongly agree, 20(47.6%) of the respondents
claimed that they agree with the statements the activities of all individuals concentrated and
integrated in the common patterns, 14(33.4%) of the respondents were disagree with the
statement and the finally, 1(2.4%) of respondents was neutral. From the respondents the
researcher can say that the majority of employees are assigned based on their activities.

As can be seen in table 4.3 item 5, 4(9.5%) of respondents were very high, 17(40.4%) of the
majority of respondents feel that the activities carried out in the department are valuated to
each other by rating high. But, 14(33.4%) of respondents claimed that they were low with this
statements finally, 7(16.7%) of respondents were said noting (neutral). Hence, this shows that
the respondents are some why comfortable about the relatedness of the activities carried out
there.

4.4 Employees communication in the organizational structure


Organizational structure is determined by a fit befell information processing requirements so
people have too neither little nor too much relevant information. However, the how of
information is essential to the organizations. The organizations structure should be designed to
answer those individuals and department that needs to coordinate their effort have line of
communication they are built in to structure. Companies may use varies organizational structure
for communication purpose. Large companies have many level of management. Therefore, the
most effective way to communication is from top of the organization to down (D. Penguin,
2003).

The below tables implies the communication between top management and employees in the
organization.

Table 4.4 Employees communication in organizational structure

No Description Very high High Medium Low Very low Total

No % No % No % No % No % No %

1 To what extent you get 2 4.8 18 42.9 60 14.3 13 30.9 3 7.1 42 100
the information flow
between you’re in for
mediate supervisor and
subordinate

Description Strongly Agree Disagree strongly Neutral Total


agree

No % No % No % No % No % No %

2 “Do the objectives of the 3 7.1 21 50 12 28.6 4 9.5 2 4.8 42 100


company clearly
communicated to you?”

3 “There is enough 2 4.8 22 52.4 13 30.9 4 9.5 1 2.4 42 100


communication with in
the organization”

Description Very high high Medium low Very low Total

No % No % No % N % No % No %
o
4 Top management 4 9.5 11 26.2 14 33.4 9 21. 4 9.5 42 100
communicates all the 4
relevant information
accurately and timely
within the employees

Description Strongly Agree Disagree Strongly Neutral Total


agree disagree

N % No % No % No % No % No %
o

5 Does the manager 1 2.4 16 38.1 17 40.4 5 12 3 9.5 42 100


encourage to employee I
the involvement of the
organizational structure?

Source: Questionnaire survey 2016

As it can be clearly observed from item 1 of table 4.4, 2(4.8%) of the respondents were very
high, 18(42.9%) of respondents claimed that they are high, 6(14.3%) of them were medium,
13(30.9%) of respondents were rejected this statement and finally, 3(7.1)of respondents said
very low. The researcher conclude that the major 26(61.1%) which are high of respondents, so
the information flow between their intermediate super visor and subordinates are good
relationship.

As item be seen in table 4.4 of item 2, 3(7.1%) of respondents were strongly agree, 21(50%) the
majority of respondents agree with this statements, 12(28.6%) of respondents were disagree,
4(9.5%) of them were strongly disagree and finally, 2(4.8%) of respondents were neutral. Hence,
25(57.1%) the majority of respondents agreed with the statement “objective of the company
clearly communicated to you” were accepted by them. That means the objectives the
organization clearly communicated to employees.

Table 4.4 of item 3, 2(4.8%) of respondents were strongly agree, 22(52.4%) the majority of our
respondents claimed that they are agree with the statement, 13(30.9%) of them disagree,
4(9.5%) of respondents were strongly disagree and at finally, 1(2.4%) of respondents was neutral
with the statement. So, the researcher concluded above half of respondents 52.4% are agree
with that there is enough communication with the organization.

As it represented in the above table 4 of item 4, 4(9.5%) of the respondents claimed that they
very high, 11(26.2%) of the respondents were high, 14(33.4%) of the respondents were medium
with this statement, 9(21.4%) of the respondents claimed that they were low and finally, 4(9.5%)
of the respondents were very low. Hence, it is possible to see that above half 59.6% of
respondents are high and this implies top management communicates all the relevant
information accurately and within he employees in the organization.

As it be seen in item 5, respondents 1(2.4%) is strongly agree, 16(38.1%) of the respondents


were agree, 17(40.4%) of the respondents disagree with the statement “Does the manager
encourage to employees in the involvement of the organizational structure, 5(12%) of the
respondents were strongly disagree and finally, 3(7.1%) of respondents were neutral. The
researcher conclude that as seen from respondents 22(54%) of them disagree with that manager
encourage employees involvement in the organizational structure. The involvement of
employees in the organizational structure in the organization is low.

Qualitative data analysis


In order to cross check the data from the questionnaires, the student researcher hold in depth
interview with the vice-manager of the organization, personal manager some employees.
Accordingly, the results of the interview are presented here under.

1. What do you think about the width of the span of control in your
organization?
The replay from was, the width of spam of control within the organization is not difficult for
manager. In the department different size of employees. The large size of departments are top
employees and above and two supervisors. The researcher concluded that as Steven. L.
(2005:431) stated that today, the best performing manufacturing facilities currently have all
average of 31 employees per supervisor and 6 supervisor per manager.

Therefore, the organizations has wide span that difficult to control employees lees control of
employees tend to reduce its performance.

2. How do you see the flexibility of organization structure in the TWWCE?


In order to do their work gently and speedy ware designed flexible structure and this help them
work with their employees and to satisfy their public by service. The flexibility of the
organization measure its performance annually, due to the organizational structure whether
flexible to perform over all organization or not when weakness seen in the performance the
management.

As the researcher point of view, less flexible because of, when gaps occur in short period before
amendment. This inflexible hinder on its construction performance.

3. How do you see the decision making practice in your organization?


The decision making in the organizational usually based on top management and the collective
agreement, this means that the selective manager of different, department the manager of
workers association and the executive of the workers association are participate in the decision
making. Employees not participate in the issue of organization. As the result to this replay, the
researcher concluded that the decision making practices is done by the managers and the
employees. When the employee’s involvement increases in organizational affairs and decision
making processes the sense of belongingness among the employees will increase on the other
hand, the organization to gather different portions and enable to use every available
opportunity at hand. So, limited employees in decision making reduce the organizational
performance.

4. What basis of departmentalization that you generally followed in your


organizational structure? How tasks are divided, grouped and
coordinated?
In the organization departmentalization is matrix form of structure. Because of, matrix
structures occur in project based organization. The departmentalization is divided the
departments based on the arrangement of the organization and grouped similar task under the
same department and they are all coordinated by manager. For effective administration and
management the departmentalization in the organization is a key factor for the success and
avoid work load in the matrix structure is combining of two structures, existence of two bosses
on departments also dilute accountability. And also this structure tends to generate conflict,
organization politics and stress those impacts on its performance.

5. To what extent the organization permit employees participate in


designating or redesigning the organizational structure?
In the organization the employees are not participate in the organizational structure. In the
designing and redesigning of the organizational structure, the board of directors, top managers,
department managers and the executive worker association are necessary passed the
organizational structure. As the result to this replay, low or no involvement of employees in the
organizations designing and redesigning structure.

The researcher perceive that organization to be successful the participating must be there, the
participating of employees in designing or redesigning of organizational structure has a positive
influence in the overall organization performance.

6. How the authority delegate to the employees?


The organization delegate the authority to employees in good manner. The delegations of
authority for employees are based on the organization senate and other rule and regulations
mainly professional to that authority, work deductive and good work ethics. Specially, based on
the employee’s ability and willingness to perform to his/her sale gated authority. The
Researcher concluded that an authority delegation to employees simple to delegate.
CHAPTER FIVE

Summary, conclusion and Recommendations


The ultimate of this study focus on employee’s attitude on organizational structure, a case study
on TWWCE. In order to achieve this objective, related literature reviewed, data from replies and
interviewed was held with the division of human resource department, vice manager of the
organization and employees. Questionnaire was distributed to the sample respondents.

The data obtained were presented using percentages and summarized as shown below.
Moreover, based on the summary, conclusions are drawn and recommendations are forwarded.

5.1 The major finding of the study is summarized as follows:-


The sex ration in the organization shows 22(52%) were female employee. But interview results
and organizational documents shows that there is no discrimination on employees hiring and
employees got their work position based on their qualification.

 As can be revealed from the responses the age, educational qualification,


years of experience and their assigned task was not the barrier to be on
positive side of their organization.
 As indicated in individuals got relevant experience with current occupation,
significant number 37(88%) of the respondents are agreed.
 The large number 27(64.2%) of the respondents are agreed that
organizational structure goes together with its work process.
 The other 26(62%) the majority of respondents agreed that the
organizational structure is suitable to achieve vision and mission of the
company.
 It is revealed from responses the majority 29(69%) of respondents were
agreed the organizational structure has positive influences on the
implementation behavior of the organization.
 As the interview result replies employees on the participation of the
employees in the designing and redesigning of the organizational structure,
low employees concern with designing and redesigning of organizational
structure.
 The largest number 25(63.6%) of respondents disagree with the
organizational allowed the freedom to work according their own process
alternative of employees.
 The other large number was 28(66.7%) disagree that there is clear line of
authority. And also largest replies of disagree were given for individuals in
the organization is assigned with a clear role and reasonable responsibility.
 As can be revealed from responses, 22(52.4%) are agreed with and satisfied
with the organizational structure have positive impact on its performance.
 The majority, 23(54.7%) of respondents are dissatisfied with in the
organization assigned with a clear role of employees.
 As indicated in the responses 23(54.7%) above half that agree with activities
of all individuals are concentrated and integrated in common patterns.
 The half 21(50%) of respondents are agree with the extent of the activities
that are carried out in departments related to each other. But from interview
replies, organization uses matrix depart mentation combining of two
structure, existence of two boss on departments also dilute accountability
and tend to generate conflict and organization politics and stress.
The majority of respondents 24(57.2%) replies that the objective of the
company clearly communicated to the employees.
 22(52.4%) of the respondents there is enough communication with in the
organization
 Greater than half 29(59.6%) of the respondents replies top management
communicates all the relevant information accurately and timely to the
employees.
 The majority 22(52.4%) of respondents were disagree with that manager
encourage employees involvement in the organizational structure.

5.2 Conclusions
This section provides general conclusion about issues raised and discussed in the data analysis
part of the chapter. Taking the data analysis and the findings in to account the following
conclusions could be reached.

 According to the data and replies from the interview high light, and as stated in the
literature review, the organization structure goes together with its work process and the
organizational structure is suitable to achieve vision and mission of the organization.
 The researcher observes the width span of control within the organization is wide span
that difficult to control of employees, tends to reduce effectiveness on performance.
 Based on the majority of employees the researcher point out that participation of
employees in the designing and redesigning of organizational structure was low.
 As the majority of the replies agreed and researcher conclude that organizational
structure is positively influence on the implementations.
 The result shows that the majority of employees disagree that the organization allowed
the freedom to work according to their own process alternative of employees.
 Based on the employee’s despondences and as the researcher points of view there are
disagreed with the clear line of authority, and organization employees are dissatisfied
with the assigned clear role.
 The researcher observed that the organizational structure is the matrix from of
departmentalization, because the matrix structure occurs in project based organization.
 The majority of replies agreed communication of the employees and managers is
efficient and the level of satisfaction in flow of information between and superior and
subordinates is high.
 According the findings the decision making in the organization is decided by top level
managements, employees does not involve in the decision making.
 At last, the respondent replies that top management communicates all the relevant
information accurately and timely within the employees.

5.3 Recommendations
The researcher like to recommend the following points which are drawn the study for the
betterment of organizational structure and its impacts on performance of TWWCE

 It is believed that in organizational structure the information is important factors in


development and continuous growth of the organization. The organization should
maximize the level of access to reliable information. Besides managers create and
facilitate the flow of necessary information and accessibility for and individual in the
organization.
 The company has wide span of control that means it is difficult to manage the employees.
So company should medium span of control that makes employees flexibility and good
working condition results effectiveness and efficiency or organization on its performance.
 The researcher also recommends that the involvement and participation of employees in
designing and redesigning of organizational structure is low. So, the organization should
be arranging more training, meetings and seminars the organization can increase the level
of involvement of employees in the organizational structure designing and redesigning
activity. This will decrease the level of disagreement and increase the level of belongings
of the organization among the employees.
 In the organization there is no clear line of authority. So, the researcher recommended
that the company should implement on clear responsibility and authority relationship
with in the structure and the communication of the employee and managers.
 The organization not allowed the freedom to work according their own process
alternative of employees. Therefore the researcher recommended that, the organization
should increase the employees freedom to work there, the organization should increase
the employees freedom to work their own process, increase the work specialization and
assign the work based on their qualification to achieve the goals of organization.
 Finally, the participation of employees in decision process is low. So, the organization
should increase the employee’s participation in decision making process on the issues of
the organization. Makes sense of belongingness of employees will increase. Moreover,
the employee’s involvement on decision making process will help the organization to
gather different opinions enable to use every available opportunity at hand.

REFERANCE
A.Y. Nahm, et al '' The impact of organizational structure on time based manifacturing and plant
performance '' journal of operation mangmentvol1.21, number 3,pp . 281-287, 2003
A merik and kumar (2003) orginational Theory and behavior , ( second edition ). new delhi publication
private limited company .

D. Penguin,'' fundamental of organizational structure '', 2003. http// www.up . univ. mrs fr

D. N. Kumar and R . mittal ,(2001). organizational behavior , (1st edition ). New Delihi ; anmor
publication pvt . ltd

H .Mintz berg '' The structuring of organizational '', Perntic hall, New Jersey , 1979

Hodge , B.J A , williams and Gales , Lawrence (2003). organization Theory ; stratigc A pproch ( sixth
Editon ). upper saddle river , New Jerseyb ; prentic hall

J. child'' oergnaztional structure , Environment Performance ; The strategic choice; jouranal of


manegment study . vol .6 number 1, pp,1-22 1972

J H Jackson and c.p morgan '' origination Theory , journal of management study ,(2nd edtion ) ,
prentice Hall , Sddle River , 1982

Mishra , M .N (2003) . Organizational Behavior , 1st edtion . New Delhi ; vikas publishing house pvt ltd

P. D Martinelli ;; system Hierarchs and management ; system Research and behivoral science . vol .
18 number 1 pp ,. 68-87, 2001

P .R Lawrence and J W .Lorsch;; organizational and Environment ;; Irawin, home wood , 1967

Robbins and Timoty (2009). organization behavior ,( seven edtion ) university of of westrn Austrilia ;
McGraw - Hill Ryserson limited company

Robbins , p , (20003). organization behavior ,( sixth edition ) . New York ;McGraw Hill companies .

Dear Respondents
The objective of this questionnaire is the assessment of organizational structure
and its impact on performance in Mekelle University College of business and
economics department of management

DIRECTION

Please give us your experience as honestly and as openly as you can the
information that provided to treated strict confidence

 There is no need to write your name


 Please indicate your choose by encircling your answer.
 Please put your opinion in please provided where writing is necessary

Respondent profile

1. Gender

A. male B. female

2. Age

A. 18-24 B. 25-34 C. 35-44 D. 45-54

3. Educational level

A. below 10 B. 10/12 complete C. 10+3 diploma

D. BA/ MSC MA /MAC and above

4. How long have you working in this organization?

A. below 1year C.1-3 year

B.4-6 year D.7-9 E. 10andabove

5. Have you any relevant exipirance withyour current occupation?

A strongly agree C agree E neutral

B disagree D strongly disagree

Conformity organizational structure in the organization

6 do you believe TWWCE organizational structure go together with the work process?

A .strongly agree C. agree. neutral

B. disagree D .strongly disagree

7 .the organization structures are suitable to achieve vision and mission of TWWCE?

A strongly disagree C agree E neutral


B disagree D strongly agree

8. Organizational structure influences the behaviors of the company?

A strongly agree C agree E neutral

B disagree D strongly disagree

9.Do you believe t that organizational structure of TWWCE negatively affects its
performance?

A yes B no explain it?

10.The organization allows you to discharge your work assign freely?

A. strongly agree C. agree E neutral

B. disagree D. strongly disagree

11.There is clear line of authority? in w/c the organization follows strictly

A strongly agree C agree E neutral

B strongly disagree D disagree

12.Do you believe that the organization structure positive impact on performance?

A strongly agree C agree E neutral

B dies agree D strongly disagree

13. Do you believe that employees in the organization are assigned withina clear role?

A strongly agree C agree E neutral

B disagreed strongly disagree

14 the activities of all individual are concreted and coordination in common pattern?

A strongly agree C agree E neutral

B disagreed strongly disagree

15. To what extent the activities that are carried out in your department related to each
other?

A very high C high E neutral

B low D very low


18.To what extent you get the information flow between your so supervisors and
subordinate?

A very high C high E medium

B low D very low

17.Dothe objective of the company Cleary communicated to you?

A. strongly agree B. dis agree C. Agree

D. strongly dis agree E. neutral

18. There is enough communication with in the organization

A. dis agree B. strongly agree C. agree D. strongly dis agree E. neutral

19. To management communication to all the relevant information a currently and


timely with in the employees

A. very high B. high C. medium

B. low D. very low

20.Does the manger encourage to employees in the involvement of in the organization?

A strongly agree C agree E neutral

B disagree D strongly disagree


INTERVIEW QUESTIONS

1 what do you think about the width of the span of control in your origination

2 how you see the flexibility of the organization structure in Twwce

3 how do you see the decision making practices in your organization

4 what basis of department ion that you generally fool wed in your
organizational structure how the tasks are divided; grouped and coordinated

5 to what extent the organization permits employees participate in designing or


redesigning the organization structure

6 how the authority delegated to the employee

You might also like