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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.


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IMPACT OF STRUCTURE AND TECHNOLOGY ON EMPLOYEE BEHAVIOUR IN ORGANISATIONS

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