Organizational Structure: A Corporate Performance Influencer (Evidence from Selected Nigerian Manufacturing Firms)

Abstract

This study investigated organizational structure: A corporate performance influencer. Evidence from selected Nigerian manufacturing firms. It assessed the effect of structural dimensions of specialization, hierarchy, on performance of manufacturing firms. The research design adopted was Ex-post facto research and stratified random sampling technique was used to self-administer copies of a five-point Likert-scale structured questionnaire to 282 respondents in three manufacturing firms. The data obtained were analyzed using simple linear regression. The findings showed that specialization and hierarchy play a significant role on the performance of manufacturing firms. Hierarchy layers should be managed in regards to the need for control and flexibility and employee empowerment. Too many hierarchies result in tight controls, rigidity, centralized decision making and too many specialized operations that stifle creativity, flexibility and innovation. Furthermore, there should always be room for modification of work rules, as specialization can be improved and needs to be balanced with the work.

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