EFFECT OF STRUCTURE ON ORGANISATIONAL PERFORMANCE OF NIGERIAN COMMERCIAL BANKS

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EFFECT OF STRUCTURE ON ORGANISATIONAL PERFORMANCE OF NIGERIAN COMMERCIAL BANKS 

 ABSTRACT

This study examines the effect of structure on organisational performance of Nigerian commercial banks. Organisational design is the choice of appropriate structure for the organisation. Some corporate managers often do not critically align the structure of the firm with its nature and scope. This non- alignment makes the mechanism for corporate effort and desired organisational performance difficult to be actualized. Also, the functions of the formal structure and activities often exist independently of the members of the organizations 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 with the structure and who give direction, shape and personality to the organizations’ framework. Therefore, when the human elements are not organized in layers in terms of the structure, the organisation will live in a state of anarchy, thus affecting efficiency. This will eventually lead to low productivity hence low profitability. Thus, it is against these backgrounds that this study sought to evaluate the relationship between structure and organisational efficiency of Nigerian Commercial banks; evaluate the role of structure on cost efficiency of Nigerian Commercial banks and determine the role of structure on job satisfaction of Nigerian Commercial banks’ employees. This study used the survey research design and the respondents were drawn from fifteen commercial banks in Enugu state. The sample size consisted of five hundred and forty-three (543) managerial and non-managerial staff of the commercial banks in Enugu state and data collection was by questionnaire structured in five (5) point likert-scale. The reliability test was by Pearson Moment correlation at 0.82. The data were presented and analysed using percentages. The study reveals that the perception of managerial and non- managerial staff of commercial banks in Enugu state indicates that there was a positive relationship between structure and organisational efficiency of Nigerian commercial banks (correlation coefficient (R) = 0.935). The perception of managerial staff of banks in Enugu State indicates that structure had a significant positive effect in the enhancement of performance of Commercial Banks in Nigeria (Cal X2 = 175.80 > Tab X2 = 9.48). The perception of non-managerial staff of commercial banks in Enugu state reveals  that structure had a significant positive effect in the enhancement of performance of Commercial Banks in Nigeria (Cal X2 = 192.64 < Tab X2 = 9.48).  The result again reveals that the perception of managerial staff of banks in Enugu State indicates that structure of Nigerian Banks had a significant positive effect on job satisfaction of Nigerian Commercial bank workers (Cal X2 = 36.40 > Tab X2 = 9.48). Also the perception of non-managerial staff of commercial banks in Enugu state indicates that Structure of Nigerian Banks has significant positive effect on job satisfaction of Nigerian Commercial bank workers (Cal X2 = 132.49 < Tab X2 = 9.48). The study therefore recommends amongst other recommendations that since good structure have positive and significant effects on job satisfaction of commercial bank employees, structure should be decentralized to the greatest extent possible to enhance innovation and increased satisfaction of their employees.

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