ABSTRACT
This research work examined how the environment affects the structure
of an organization. It focused on the types of environment in which the
business organization operates and how to choose the structure to match the
turbulence in the environment based on Griffin 1999.
To solve the problem under
investigation a study of Afribank Nigeria Plc Enugu was undertaken. The major
findings of this study are;
1, Organizations must interact
with their environment in order to survive.
2, Organizations
face different types of environment.
3, Organizations
respond to changes in their environment by Creating new structures.
4, There
is need for an organization to identify homogenous segment outside the
organization and respond appropriately.
5, Organizational performance is low when there is no structural
response to changes in the environment.
Based on the above findings, the researcher concluded that the
environments have impact on organization structure and hence organization
survival and recommends that the organizations should provide flexible
organization structure that will easily adapt to changes in the environment.
CHAPTER ONE
1.0 INTRODUCTION
1.1 CONCEPTUAL
FRAMEWORK
The conceptual framework of this study is
drawn from business policy and strategic management. Strategic management
focuses interest on how the general management of an organization relates such
an
organization to the
changes in the environment so that the organization will not be taken by
surprise, thereby, incurring unnecessary losses due to inability to anticipate
and take necessary actions to contain the impact or ultimate consequences of
environmental changes. So, understanding the concept of business environment is
very important in understanding strategic management responses Onwuchekwa
(2000). The importance of strategic management can be understood from the
limited variety theorem and requisite variety imperative theorem viewed from
the law of limited variety theorem (see Pondy and Mitredf, 1979). “A system
will exhibit no more than the variety to which it has been exposed in its
environment” and the requisite variety imperative which states that the
complexity and subtlety of firms response must match the complexity and
subtlety of the environment.
From the open system conception about
organization, environment has direct impact on the organizational structure
Lawrence and Lorche (1967), Thompson (1967) so, when the business environment
changes, the organization studies the pattern of expected organizational
responsiveness and respond to those changes.
1.2 BACKGROUND
OF THE STUDY
Normally, changes occur in the environment
of business organization in their day to day managerial activities. Managers
encounter series of
changes. Some of the
changes are superiseful and unintended, and they posses threats and
opportunities for a particular organization. So, there is a compulsory need to
consider the business environment before designing organizational structure
this made many authors to carryout studies in organization in order to
determine the effect of environment on organizational structure and how
organization attends to its environmental demand.
Churchman (1968) defines environment as
something that lies outside the organization system and determines in part how
systems performs. Onwuchekwa (1993) sees environment as those individuals,
institutions, organization suppliers who in one way or the other render
productive services to an organization but such organization cannot control the
activities of these entities. Hence organization must adapt to the demands.
Burns and Stalker (1961) found out that the effectiveness of a particular
organizational design varies under different environment conditions. Two forms
of organizational structures know as mechanistic and organic structure were
discovered. The mechanistic structure is more effective in stable environment
while the organic structure is more effective in changing environment.
Based on the uncertainties and changes
faced by different organization, this study will analyse different business
environment and suggest strategies
for survival and maintenance of growth in such environment.
1.3 STATEMENT
OF PROBLEM
The statement of problem in this study is
to investigate if changes in the business environment have impact on
organizational structure or how do managers respond to changes in the business
environment. When the managers do not respond to changes in the environment
what happens? These are the major issues that will be studied in this thesis.
On the basis of the knowledge gained from this study, a recommendation will be
made for improvement.
1.4 OBJECTIVES
OF THE STUDY
The
major objectives of this study are;
1.
To investigate how mangers respond to changes
in the business environment.
2.
To investigate if changes in the business
environment induce structural changes within the organizational structure.
3.
When business organizations adapt to changes in
the business environment do their performances increase.
4.
To make suggestions on how to adapt
organization to their environment.
1.5
HYPOTHESES FOR THIS STUDY
Hypothesis One
The organizational
structure of an organization does not become more complex with structures and
processes when an organization responds to a complex environment.
Hypothesis
Two
The corresponding Organisational structure
of an organization will not be simple when the environment of the Organization
is simple.
Hypothesis
Three
Organisational performance will not be low
when the environment expects some aspect of organizational responsiveness from
the structure and the organizational structure cannot provide that
responsiveness.
Hypothesis
Four
An organization will not identify
homogenous segments of the organizational environment and respond appropriately
when the changes in the business environment are complex and shifting.
Hypothesis
Five
Organisational structure will not become
stable and static when the business environment is stable and repetitive.
1.6 SIGNIFICANCE
OF STUDY
The recommendation of
this study will be to magnify the environmental factors that affect the
operative activities of an organization and the strategies to be adopted by the
organization in dealing with those environmental influences in order to
maintain a maximum level of performance. Consequently, this study will also
enable the management to learn how to reduce structural complexities by
choosing appropriate structure that matches the turbulence which the
organization faces overtime.
Finally, it will add to existing
literature in Business Administration and management and also be a reference
material for further research on business management and environmental
influence.
1.7 MOTIVATION
FOR THE STUDY
The motive behind this study is paramount
to the high level of influence of environment on organizational structure and
these may affect the organization from accomplishing its stated goals. Business
organizations encounter series of changes in their environment. Some of the
changes are surpriseful and unintended and these posses a lot of threats and
opportunities for a particular organization depending on how they respond to
changes.
The researcher was also motivated to
choose this topic in order to find out how consistent the previous findings on
these issue and also to identify and recommend to organizations on how to
respond to constant environmental Changes and influences in order to survive.
1.8 FORMAT
OF THIS STUDY
This
study will be divided into five (6) chapters for easy understanding. The
headings under the chapters will include;
1.
Chapter One – Introduction
2.
Chapter Two – Literature Review
3.
Chapter Three – Design and Methodology
4.
Chapter Four – Data Presentation and Analysis
5.
Discussion from the findings on the effect of
environment on organization structure.
6.
Chapter Five – Findings, Conclusions and
Recommendation
1.9 DEFINITION
OF TERMS AND CONCEPTS
1.
ORGANIZATION: It is
the association of two or more people working together towards a common purpose
under leadership and authority.
2.
BUSINESS ORGANIZATION: It is
an organization that is primarily oriented towards economic production,
which aims towards long survival through effective structural development and
efficient economic performance.
3.
ORGANIZATIONAL STRUCTURE: It is
the way in which an organization activities are divided, grouped and
coordinated into relationship between managers and employees, managers and
managers.
4.
ENVIRONMENT: They
are the institutions or forces outside the organizations that
potentially affects the organization performance but are not subjected under
their control.
5.
DOMAIN: It is the sphere of
action through which an organization carries out its economic
activities.
6.
MANAGEMENT: it is
a process of organizational design. it is also defined as the process of
planning, organizing, leading and controlling the efforts of organization
members and the using all other organizational resources to achieve stated
organizational objectives.
7.
STRATEGIC MANAGEMENT: It is
increasingly the responsibility of management to respond to changes in
the business environment through strategic planning, capability planning,
strategic issue management and management of resistance to change.
8.
ENVIRONMENTAL CONSTRAINTS: These
are uncertainities facing business organizations, which if not properly
managed can increase environmental dependence and reduce organizational
effectiveness.
9.
STRATEGY: It is
a pattern in a stream of decisions or actions, the pattern being a
product of whatever intended (planned) strategies are actually realized and of
any emergent (unplanned) strategies.
11.
TECHNOLOGY: It is
the means through which an organization produces product and it is the
complex of techniques for manipulating materials in a directed manner. It can
influence managerial processes and actions.
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Item Type: Project Material | Size: 88 pages | Chapters: 1-5
Format: MS Word | Delivery: Within 30Mins.
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