THE INFLUENCE OF ORGANIZATIONAL STRUCTURE ON PROJECT PERFORMANCE (A STUDY OF CRUSHED ROCK INDUSTRIES)


ABSTRACT

The level of motivation received by an employee as reflected in the satisfaction with the base pay package and other incentives goes a long way to influencing the employees’ attitude to work, loyalty, performance and job satisfaction. Employee’s motivation and organization performance has been investigated across different fields and economic sectors. This study takes it further by examining incentive package, employees and organization productivity in real estate firms in Nigeria. Panel survey approach was adopted and three questionnaires administered in each of the twenty five (25) staff of First Bank and Union Bank both in Okigwe L.G.A of Imo State. Findings showed amongst others that there is strong positive correlation between incentive and employee productivity, employees are largely dissatisfied with the incentives offered by majority of estate firms and that incentive package is not the most important determinants of performance in real estate firms. The study therefore concludes that employers in real estate firms pay attention to other factors identified and review remuneration and incentive package to boost the morale of their employees for better performance.




CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND OF STUDY
A suitable organizational structure may assist the project management team to achieve high performance in the project through gains in efficiency and effectiveness. Specific project objectives are set to be achieved at the end of each project. The objectives may vary from one project to the other. Time, cost and quality objectives are however basic and common to almost all projects; they are discussed in the success subject matter of most projects (Belassi and Tukel, 1996).
Crushed Rock Industries is a quarry and construction with its headquarters Portharcourt, Rivers State. There are about 20 departments ranging from human resource, training, various mining sectors, processing, various engineering departments, projects etc. Even though there is a project department not all the projects are handle by them, some are by wholly contractors, others are handle through the corporate office, separate task force are also set up to handle projects and the various department do handle some of the projects internally. In addition to this the project department itself have a structure supporting it, which mostly depend upon other departments resources like equipment and expertise to execute its projects hence there are scramble for resources, projects delay, overspending on projects budgets and poor quality of works prevails (Asare,2010 ). In the modern day and age, almost all products and services are based on the combination of human know-how, statistics, software and hardware, which is a blend that a single person cannot entirely grasp to help attain the production thereof. Consequently, organizations in the form of specialists’ teams are fashioned to compete in today’s cut-throat markets. Organizations intended to generate goods and services, despite being old as the existence of humankind, need a synchronized labour of many individuals to accomplish a set out objective/goal. The philosophy of division of labour and specialization are basic to many organizations in contemporary society as they were in antique.
1.2     STATEMENT OF PROBLEM
Project performance can be affected by a range of things; of these is the organisational structure of the business (Paul, 2010). As mentioned, it has been observed that the most successful way of exploiting a strategic opportunity or implementing a change in a company is through a temporary process or structure i.e. a project team focused on the project task and objectives in order to solve a problem or implement a new strategy (Partington, 2000). Many organizations encounter a lot of challenges in its projects implementations. It is faced with complex oganisational structure, weak project structure, scramble for resources, projects delay, overspending on projects budgets and poor quality of work prevails (Asare, 2010). Due to the above named challenges the study intend to investigate the effect of organistional structure on its project performance with focus on Crushed Rock Industries in Ishiagu because, organisations that manage multiple projects at the same time requires to keep a good monitoring and controlling project performance, and to create the best project governance structure (Dinsmore and Cabanis-Brewin, 2006). Again many organisational flaws can be related to an inappropriate structure chosen in order to reach a desired goal. An appropriate structure is contingent upon both the type of work to be performed as well as the environment in which the organisation conducts business (Bolman & Deal, 1997).
Different structures provide different strengths and weaknesses to the work to be performed and it is therefore important to find a structure suitable for the desired outcome on stability and predictability (Mintzberg, 1983).
1.3     OBJECTIVES OF THE STUDY
The main of objective of this study is to investigate the influence of organizational structure in its project performance with Crushed Rock Construction Company, Ishiagu, Ebonyi State as a study. The specific objectives include to:
1.     Determine the basis of the organisational structure put in place for projects in the study area.
2.     Measure the performance of the project key performance indicators (KPI’s) at the study area.
3.     Identify the problems of implementing projects at Crushed Rock.
4.     Examine the relationship between organisational structure and the performance of a project in Crushed Rock.
1.4     RESEARCH QUESTIONS
1.     What is the basis of the structure put in place for projects in Crushed Rock?
2.     What is the measure of performance of the key project indicators at Crushed Rock?
3.     What are the problems of implementing projects at the study area?
4.     What is the relationship between organisational structure and performance of a project in Crushed Rock?
1.5     SIGNIFICANCE OF THE STUDY
This research will personally help me to broaden my knowledge on organisational structure and project performance. It will also give Crushed Rock Construction Company management, the Government of Ghana and other stakeholders the relevant literature in reviewing the performance of projects in Crushed Rock Construction Company. Since to the best of my knowledge, no known investigative work has been done and documented in this area, it will add knowledge and scholarly literature to academic institution such as KNUST, the mining sector and other institutions worldwide by serving as a source of reference.
1.6     SCOPE OF STUDY
This thesis was a case study based on Crushed Rock Construction Company. Numerous are the factors that affect project performance, although project performance is influenced by several factors as stated by Blismas et al., (2004), the focus here is on the effect emanating from oganisational structure. Project performance is considered in the context of achievement of a project’s Time, Quality and Cost objectives; it does not include other emerging performance metrics used in the measurement of project performance.
1.7     DEFINITION OF TERMS
Organizational structure: Is the formal system of task and authority relationships that guides how people are to cooperate and use resources to attain organisational goals.
Decision-making: This is the process of arriving at a viable choice(s) among alternatives available. The process comes up with the best choice for adoption, and that which can best steer the projects’ performance to the desired outcome.
Organizational size: This refers to the expanse or the geographical coverage of an organization.
Project performance: As used in this research, refers to the ability of an organization to deliver the mandate bestowed upon it. That is, the deliverability of an organization.



 
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