ABSTRACT
The study is aimed at evaluating the Impact of Structure and Technology on Employee Behaviour in organisations, using a selected service oriented organisation and a manufacturing organisation namely: Diamond Bank Plc and Nigerian Breweries Plc in Enugu State. The two major objectives of the study were to determine the extent to which structure and technology influence employee behaviour and to determine how the application of good structure and technology could improve employee behaviour. The primary and secondary sources were used to obtain information for the study. The questionnaire was structured in five point Likert scale type format, in line with the objectives set out to achieve the study. In calculating the sample size, the researcher applied the statistical formula for selecting from a finite population as formulated by Yamane (1964:280). The researcher chose to use the stratified sampling method so as to give a fair representation to the designated organisations and also by using the proportionality formula to allocate the sample size. The Chi-square (X2) statistical test method was used to test the hypotheses for the study. Findings indicate that the extent to which structure and technology influences employee behaviour is high and that the application of good structure and technology would result to improved employee behaviour by designing structures which achieve a balance between cooperation and competition, which combine team behaviours and individual motivation. Conclusively, organisations are set up for specific purposes, to achieve set goals and objectives. People join organisations because they believe that their personal goals could be met, while they strive to achieve the organisations objectives. Structure and technology provides the framework of an organisation and makes possible the application of the process of management. Based on the findings, the study recommended that management of organisations should design their structure and technology to have significant effect on the management and functioning of the organisation in such a way as to help employees work together effectively by clarifying employee’s responsibilities and how their efforts should mesh through job descriptions, organisation charts and lines of authority.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
An organization is established to achieve set goals and objectives. For it to realise this, its work has to be divided among its members. Some structure and technology is necessary to make possible the effective performance of key activities and to support the efforts of staff members. Structure and technology provides the framework of an organization and its pattern of management. It is by means of structure and technology that the purpose and work of the organisation are carried out.
The structure of an organisation is usually depicted in the form of an organisation chart. This will show, at a given moment in time, how work is divided and the grouping together of activities, the levels of authority and formal organisational relationships. The organisational chart provides a pictorial representation of the overall shape and structural framework of an organisation. Some charts are very sketchy and give only a minimum amount of information. Other charts give varying amounts of additional detail such as an indication of the broad nature of duties and responsibilities of the various units. Organisation charts are useful in explaining the outline structure of an organisation. They may be used as a basis for the analysis and review of structure, for training and management succession, and for formulating changes.
The functions of structure and technology, the activities and defined relationships within it, exist independently of the members of the organisation who carry out the work. However, personalities are an important part of the working of the organisation. In practice, the actual operation of the organisation and success in meeting its objectives will depend upon the behaviour of people who work within the structure and who give shape and personality to the framework.
The human relations writers are critical of the emphasis on the formal organisation. The favour a structure in which there is increased participation from people at all levels of the organisation, greater freedom for the individuals, and more meaningful work organisation and relationships. The view of the human relations writers represents more of an attitude towards organisation than specific proposals, but it reminds us of the importance of the human element in the design of structure and technology. Managers need to consider how structural design and methods of work organisation influence the behaviour and performance of members of the organisation.
The quality of the relationship between line and functional managers lies at the heart of achieving both the compliance to rules and ability to work with the principles behind them. If the relationship is good, and trust and respect high, then both sides understand the importance of each other’s role. Line management knows they will always be pressing to drive harder on performance, but understand the functional roles are there to help create, and strengthen the boundaries they must cross.
The overall function and direction of a work organisation is determined by the nature of its corporate strategy. Strategy provides goals, objectives and guidelines for the structure & technology and operations of the organisation. Organisations play a major and increasingly important role in the lives of us all. The power and influence of a business organisation must also be tempered by decisions relating to its broader social obligations and ethical responsibilities.
Also, the structure and technology of an organisation affects not only productivity and economic efficiency but also the morale and job satisfaction of its workforce, hence the impact it has on its employee behaviour. Getting the structure and the technology right is the first step in any organisational plan. Structure should be designed, therefore, so as to encourage the willing participation of members of the organisation and effective organisational performance.
It is important to bear in mind that there are many variables that influence the most appropriate organisation structure and system of management, including situational factors and the contingency approach. Changing patterns of work organisation, the demand for greater flexibility and the multi-skilling challenge, and managerial processes such as delegation and empowerment also have a major interrelationship with structure and influence decisions on structural design and technology.
While recognising that there is clearly no one right organisation, there is nevertheless, in the final analysis, an underlying need to establish a framework of order and system of command by which the work to be undertaken is accomplished successfully. This demands that attention be given to certain basic principles and considerations in the design of organisation structure and technology, or in reviewing the effectiveness of an existing structure and technology.
1.2 STATEMENT OF THE PROBLEM.
Organisation structure helps employees work together effectively by clarifying employees’ responsibilities and how their efforts should mesh through job descriptions, organisation charts, and lines of authority. Poor or inadequate organisational structure, lack of clarity in roles and responsibility, can hinder attainment of organisational goals.
As an organisation grows in size, its hierarchy of authority normally lengthens, making the organisational structure taller. As a hierarchy becomes taller, problems that make the organisation’s structure less flexible and slow manager’s response to changes in the organisational environment may result.
Communication problems may arise when an organisation has many levels in the hierarchy. It can take a long time for the decisions and orders of top-level managers to reach lower-level managers and it can take a long time for top managers to learn how well their decisions worked out.
Another communication problem that can result is the distortion of commands and orders being transmitted up and down the hierarchy, which causes managers at different levels to interpret what is happening differently.
Distortion of orders and messages can be accidental, occurring because different managers interpret messages from their own narrow functional perspectives. Or it can be intentional, occurring because manager’s low in the hierarchy decide to interpret information to increase their own personal advantage.
The way and manner in which business is operated had undergone tremendous transformation. This accounts for new technologies that have come to replace old ones and give a new flavour to service delivery. Technological forces can have profound implications for managers and organisations.
Technological change can make established products obsolete. For example, typewriters, black and white televisions forcing managers to find new ways to satisfy customers needs. Changes in information technology also are changing the very nature of work within organisations and also manager’s job. In most industries, competitions develop along the lines of technological advancement and innovation. In fact, any organisation that is slow to adapt to technological changes is hindering the chances of its survival and growth.
This research therefore focuses on evaluating the impact of structure and technology on employee behaviour in service oriented organisations and manufacturing organisations in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The specific objectives of the study include the following:
(i) To determine the impact of structure and technology on employee behaviour.
(ii) To determine the extent to which structure and technology influence employee behaviour.
(iii) To determine how the application of good structure and technology could improve employee behaviour.
(iv) To determine the reaction of employees towards the application of a good structure and technology.
1.4 RESEARCH QUESTIONS
For the purpose of the study the following research questions were made:
1. What are the impacts of structure and technology on employee behaviour?
2. To what extent do structure and technology influence employee behaviour?
3. How would the application of good structure and technology result to improved employee behaviour?
4. What is the reaction of employees towards the application of good structure and technology?
1.5 RESEARCH HYPOTHESES
1. Ho1: Structure and technology do not result in changes to lines of command and authority and influences the need for reconstructing the organisation and attention to job design.
Hi1: Structure and technology result in changes to lines of command and authority and influences the need for reconstructing the organisation and attention to job design.
2. Ho2: The extent to which structure and technology influence employee behaviour is low.
Hi2: The extent to which structure and technology influences employee behaviour is high.
3. Ho3: Designing structures which achieve a balance between co-operation and competition, which combine team behaviours and individual motivation could not improve employee behaviour.
Hi3: Designing structures which achieve a balance between co-operation and competition, which combine team behaviours and individual motivation could improve employee behaviour.
4. Ho4: The reaction of employees towards the application of good structure and technology is negative.
Hi4: The reaction of employees towards the application of good structure and technology is positive.
1.6 SIGNIFICANCE OF THE STUDY
This study is significant because:
It will help service oriented organisations to understand the need for application of a good structure and technology in their organisations.
It will help manufacturing organisations to understand the need for application of a good structure and technology in their organisations.
It will serve as a reference material for future researchers in the same field.
1.7 SCOPE OF THE STUDY
This research work is designed to evaluate the impact of structure and technology on employee behaviour in both service oriented organisation and manufacturing organisation with special focus on Diamond Bank Plc and Nigerian Breweries Plc.
1.8 LIMITATIONS OF THE STUDY
The researcher encountered some constraints in the course of this study. Prominent among these are time, financial constraint and attitude of the respondents.
1. TIME CONSTRAINT: Due to the limited time given for the study, the researcher could not get all the information required for the study.
2. FINANCIAL CONSTRAINT: The researcher did not have enough money to embark on this study. Due to financial constraint, the researcher could not visit places where information relevant to the study could be obtained.
3. ATTITUDE OF THE RESPONDENTS: Some of the respondents were reluctant to co-operate with the researcher because they felt, it was time consuming and that they would not benefit from the study.
1.9 DEFINITION OF TERMS For the purpose of the study the following terms were used and defined as follow: AUTHORITY: This is the right to influence another person. (Edward>2007: 3).
CHAIN OF COMMAND: This is the number of different levels in the structure of the organisation. (Mullins>2007: 578).
EMPLOYEE BEHAVIOUR: This is the study and understanding of individual and group behaviour and patterns of structure in order to help improve organisational performance and effectiveness. (Gilbert>2007:93).
ORGANISATIONAL STRUCTURE: This is the pattern of relationships among positions in the organisation and among members of the organisation. It defines tasks and responsibilities, work roles and relationships and channels of communication. (Mullins>2007: 564).
TECHNOLOGY: This is the intellectual and mechanical processes used by an organisation to transform inputs into products or services that meet organisational goals. (Nelson>2006:56).
1.10 HISTORICAL BACKGROUND OF DIAMOND BANK PLC.
Diamond Bank Plc began as a private limited liability company on March 21, 1991 the company was incorporated on December 20, 1990). Ten years later, in February
2001, it became a universal bank. In January 2005, following a highly successful Private Placement share offer which substantially raised the Bank’s equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed on The Nigerian Stock Exchange. Moreover, in January 2008, Diamond Bank’s Global Depositary Receipts (GDR) was listed on the Professional Securities Market of the London Stock Exchange. The first bank in Africa to record that feat.
Today, Diamond Bank is one of the leading banks in Nigeria – respected for its excellent service delivery, driven by innovation and operating on the most advanced banking technology platform in the market. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships. And like a diamond, they believe their strength makes them even more valued and valuable. Diamond Bank has won several awards including the prestigious “Nigerian Bank of the Year, 2009”, the “Most Improved Bank of the Year, 2007” and “Best Bank in Mergers & Acquisition, 2006” all by the This Day Annual Awards.
They have retained excellent banking relationships with a number of well-known international banks, allowing them to provide a bouquet of world class banking services to suit the business needs of their clients. These international banking partners include Citibank; HSBC Bank; ANZ Banking Group; ING BHF Bank AG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank; Commerzbank; and Nordea Bank Plc.
In 2008, and to ensure they grow with the needs of their customers, they streamlined their operations into three distinct strategic business segments: Retail banking, Corporate Banking, and Public sector.
Diamond Bank is a universal bank, offering a full range of banking products and services in retail, commercial, corporate and investment banking. The business is based on strong, enduring relationships and is driven by innovation and leading edge technology. The marketing/business development function of the Bank is organised in a way that enables us service our clients in the various market segments optimally.
This structure, along with the alignment of the Bank’s service, control and other support functions facilitate excellent customer services delivery.
The various groups of the Bank are:
Retail Banking
Corporate Banking
Diamond Capital
Public Sector
Treasury and Correspondent Banking Department
Customer Services and Technology
General Services
Personal Banking
Diamond Bank has put together a team of professionals whose combined banking experience, coupled with the result-oriented culture of the Bank, enables it to offer a range of services that meet international standards. The Bank offers creative solutions to customer’s complex business problems.
Diamond Bank has identified the key success factors in today’s Nigeria banking environment to include:
competent staffing
strategic focus
superior technology, and
a sound financial position.
The Bank commands a clear edge in these areas and looks forward to putting these resources and advantages to work for their employees and their customers.
The tempo of their effort in the arena of social advocacy and corporate responsibility has been sustained in the last five years, most significantly, with the Free Eye Expedition in Damaturu, Yobe State, in October 2005. As a responsible corporate citizen, the Bank is determined to continue its contributions in various areas of our national life.
For six years, the bank has made it an obligation to help eliminate all forms of avoidable blindness. After considerations, they decided to explore Damaturu to enable the less privileged with eye defects from the North East Region benefit from the annual project.
Plans are underway to expand the scope of this project which serves as their contribution towards the Vision 2020 project which aims to reduce the incidence of blindness by half.
The Bank also bolstered its fight against the HIV/AIDS scourge through support to the Nigerian Business Coalition Against AIDS (NIBUCAA), an NGO made up of companies that are committed to providing leadership towards advancing the national response to the pandemic.
In the area of education and youth development, the Bank’s record is unprecedented. Of particular mention is their sponsorship of the maiden edition of The West Africa Universities Games (WUGA) hosted by University of Lagos. The underlying objective is the need to engage youths in positive social activity to reduce delinquency and involvement in societal ills.
Diamond Bank continues to develop and to build on its core competencies. By continually cutting from the rough, they have improved on their services and their banking facilities. Like cutting from a rough gem to create a diamond of the finest quality, they are proud to have become a gem of a bank.
1.11 HISTORICAL BACKGROUND OF NIGERIAN BREWERIES PLC.
Nigerian Breweries Plc, the pioneer and largest brewing company in Nigeria, was incorporated in 1946 as Nigerian Brewery Limited (NBL), and recorded a landmark when the first bottle of star lager beer rolled off the bottling lines in its Lagos Brewery in June 1949. The brewery in Lagos commenced the bottling of soft drinks using the brand names, Tango and Kola in 1952. This was followed by Aba Brewery which was commissioned in 1957. Subsequently, the name of the company changed to NigerianBreweries Plc.
The Brewery commissioned other brewing plants –Kaduna Brewery in 1963, Ibadan Brewery in 1982. In September 1993, the company acquired its fifth brewery in Enugu. On April 9, 2001, it christened the AMA Greenfield Brewery in Enugu, the largest in Africa. It was commissioned in October 2003. Thus, from its humble beginning in 1946, the company now has five operational breweries from which its high quality products are distributed to all parts of this great country.
The company went public in 1961. In 1962, it commenced production of Samson stout which was later called Schweppes. Nigerian Breweries Plc has a rich portfolio of high quality brands: Star Lager Beer (1949), Gulder Lager Beer (1970), Maltina (1970) which has four varieties (Maltina classic, strawberry, Exotic and Pineapple), Legend Extra Stout (1992), Amstel Malta (1994), and the Schweppes Bitter Lemon, Tonic Water and Soda Water).This was followed by the launch of the Crush Orange in November 1997 and Schweppes Pineapple in October 1999.
The company had earlier launched into the Nigerian market Heineken Lager in June 1998. However, in August 200, the company decided to exit the carbonated soft drinks market because of the need to concentrate on its area of core competence. The Schweppes franchise was therefore sold off.
Together, these brands have facilitated the strong leadership position in the total products market in Nigeria. Their outstanding quality and customer franchise complement company values and capabilities to set Nigerian Breweries Plc apart as the house of quality.
It has an increasing export business that dates back to 1986. Currently, they export to the UK, USA, Italy, Netherlands, Germany, and Kenya.
The company has a well-developed research and development centre, established in 1987 to enhance its research activities on all aspects of brewing operations.
Nigerian Breweries Plc, encourages the establishment of ancillary businesses such as manufacturers of Bottles, Crown Corks, Labels, Cartons, Plastic Crates and such services as hotels/clubs and direct customers.
It is a socially responsible corporate citizen with an enviable philanthropy in areas of education, sports, the environment, health, music, communication among others. The company in 1994 established an Education Trust Fund of N100million to take more active part in the funding of educational and research facilities in higher institutions, all in an effort to provide and encourage academic excellence in Nigeria. This is in addition to its secondary and university scholarships programme for children of its employees.
The company is the foremost sponsor of sports by variety in the country. It is a model of success in the private sector. The company’s high profile, profitability and successful operation can be traced to good product quality, efficient management of operations, strategic penetration of its market environment, adequate motivation of employees, proper understanding of customer attitudes and habits and high social responsibility profile at National and Zonal levels.
This material content is developed to serve as a GUIDE for students to conduct academic research
IMPACT OF STRUCTURE AND TECHNOLOGY ON EMPLOYEE BEHAVIOUR IN ORGANISATIONS
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