Effect of Organizational Structure on Performance of Selected Manufacturing Companies in Enugu State Nigeria

Abstract

The relevance of structure to manufacturing firms especially in the pharmaceutical industry in Nigeria has not attracted much attention, especially empirical evidence. Thus, this study examined the effect of organisational structure on the performance of selected manufacturing companies in Enugu State, Nigeria with a focus on pharmaceutical manufacturing firms. The study adopted a Survey design. Three organisations were studied namely: A.C. Drugs Ltd, NEMEL Pharmaceutical Limited and Juhel Pharmaceutical Company Ltd with a population of four hundred and sixty-eight (468).  The sample size was determined using Cochram (1963) formula which gave a sample size of 297. The study relied on both primary and secondary data. Materials and information were sourced from the Human Resource Departments of the firms and journal articles including textbooks and students project reports. The questionnaire was the instrument for primary data collection. The methods used in analysing the data are descriptive statistics (frequencies, mean, standard deviation, variance, etc.), simple linear regression and correlation (bivariate) to examine the effect of organisational structure (Independent Variable) on organisational performance (dependent variables). The study found that structure significantly affects organisational performance. The study concludes that organisational structure in pharmaceutical manufacturing firms affects performance except in its growth objective. The study, therefore, recommends that pharmaceutical firms should see their structure as a major determinant of performance and as such, non-performing firms should redesign their structure for optimal performance