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Chapter one


1.1 Background of Study

Most people in modern society work in some form of organisation and thus have firsthand experience with corporate life. This research analyses some of the findings and activities that contribute to a better understanding of the structure of organisations, including an evaluation of an organization’s structural characteristics and how these affect employee performance.

An organisation is a group of interacting and independent people who work together to achieve common goals and whose relationships are defined by a specific structure.

According to Arnold et al. (1998), this definition is a good place to start when studying organisations. The organisation design is the general layout of the many jobs, processes, and their relationships inside the organisation. It is a means of achieving the main goal. The structure is not the end in itself.

Employee performance is influenced by a number of elements (motivations), which include:

CLARITY at GOALS AND DUTIES: Employees at Nigeria LNG Ltd are motivated because the company’s goals and objectives are clear, and everyone knows what the term is working towards and what he may contribute.

When objectives and goals are established, it is simple to select an organization’s most relevant actions for achieving such goals and objectives.

Individual Consideration: When assigning sufficient measures or safeguards for management control, variations in individual capacity are considered.

FLEXIBILITY CONSIDERATION: The company’s organisational structure is adaptable, allowing for changes that may arise during firm activities.

UNITY IN COMMAND: Each employee reports to and is answerable to just one superior at any given moment for each or all of the functions he performs. No employee is subjected to orders from many sources.

SPAN OF CONTROL: The number of workers overseen by and reporting to an officer at any given moment is considered reasonable. At the organisation, the number of subordinates reporting to an executive ranges between 4 and 6, with 20 at the bottom.

appropriate RESOURCES: For a good organisational structure, appropriate resources must be made available for each individual to successfully complete his given duty.

EVALUATION CRITERIA: There are established criteria and standards for assessing individual and departmental performance.

AVAILABILITY OF SYSTEMS TO MANAGE STAFF TRAINING AND PERFORMANCE: This is another aspect that inspires employees of

Nigeria Liquefied Natural Gas Ltd will perform efficiently. To improve efficiency and effectiveness, well-defined processes for defining, producing, capturing, and acting on knowledge are required.

Nigeria LNG Ltd’s workforce performance has been improved through training and development programmes. As a result, the staff training programme in place has inspired Nigeria LNG Ltd employees.

Non-motivation of staff performance could occur if the learning and development environment is not supportive, affecting staff performance and resulting in low productivity in the organisation. As a result, environmental factors should be considered.

1.2 Statement of Problem

Various aspects of effective organisational structure discussed above were investigated in the writings of management scientist theorist Henry Fayol (1980), who created a series of books concerned with organisational structure, power, and authority within them.

An organization’s structure may have an undesirable effect on the supply of a conducive “environment for learning and performance of skills.” There are several forces that induce changes in an organization’s design;

these driving forces produce dramatic changes that can have an impact on the effective conduct of business. However, these designs are employed throughout an organisation by diverse teams.

The question of the impact of an effective organisational structure on employee performance is significant, and it has created opinions. Workers or workers of Nigeria Liquefied Natural Gas Ltd left their current jobs due to a lack of adequate working conditions, which has had a significant impact on their productivity and, as a result, the organization’s turnover.

These employees’ dissatisfaction with their jobs has led them to seek employment in another organisation where they believe better accommodations for these factors are made than in their previous workplace(s).

Furthermore, due to inappropriate plant building positioning or location, employees work under stress, which has had a negative impact on their health and productivity. The purpose of this study is to investigate the effects of an effective organisational structure on employee performance.


The purpose and objectives of this research work are as follows:

· Conduct a research on how effective organisational structure affects employee performance.

Learn about effective organisational structure, including theory and practice.

· Evaluate employee performance within an effective organisational structure.

· To improve employee performance in an organisation.

1.4 Research Question:

The following broad-based questions were developed as part of the research question preparation, interview organisation, and data collecting for the study’s hypothesis.

· How can an effective structure promote organisational stability?

· Does an effective organisational structure affect employee performance?

· Is there a system in place to effectively manage staff training and performance?

· Is employee performance correlated with good attitudes towards the organisation and their career goals?

· Does a good organisational structure improve worker performance?

1.5 Research Hypothesis

The study aims to test the following hypothesis:

H0: Effective organisational structure has no major impact on employee performance.

HI: Effective organisational structure has a significant impact on worker performance.

H0: An effective organisational structure has no effect on employee performance.

H1: An effective organisational structure has no effect on employee performance.
1.6 Significance of the Study

According to Armstrong (2001), strategic human resource development aims to create a coherent and comprehensive framework for people development. Much of this process will focus on creating an environment in which employees are encouraged to learn and perform.

An organization’s effective structure is the framework for getting things done. In order for things to be done profitably, this framework must encourage staff performance while also providing room for growth for willing employees.

However, Mr. Kingsley Consultant (Thewerkauf 1991) observed that times are changing and the law of averages no longer applies in all cases. It was a harsh reality that many large corporations and firms are still dealing with today as they struggle with organisational complexity caused by products and functions.

The previous research results show that the researcher used regression analysis. However, this study will use the Chi-square statistics method to analyse the impact of effective organisational structure on employee performance, using Nigeria Liquefied Natural Gas Limited’s organisational structure and staff performance as a case study.

This study will also provide a better understanding and insight into the relationship between a firm’s effective structure and its staff performance methods.

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