Functional Structure and Effectiveness of Oil Servicing Companies in Port Harcourt, Nigeria

Abstract

This study focused on the relationship between functional structure and effectiveness of oil servicing firms in Port Harcourt. The study adopted a cross sectional survey method. The sampling frame consists of 190 management staff of 4 oil servicing companies. Primary data was obtained using questionnaire as the research instrument. The inferential and descriptive statistical tools were used in the analysis of data for the study. The Spearman Rank Order Correlation coefficient (r) was utilized to test the hypotheses. The study confirmed that there is a significant positive relationship between divisional structure and effectiveness of oil servicing companies in Port Harcourt. The study concludes that divisional structure has a high level of impact on organizational effectiveness in selected oil servicing companies in Port Harcourt. The study recommended that oil servicing companies should carry out proper organizational structure forecasts and use these forecasts as strategic premise taking into consideration the internal and external environments, feasibility and implementation of the forecast.