CHAPTER ONE

INTRODUCTION

1.1    Background of Study

In modem society, most people spend their working lives in an organization of some sort; therefore have firsthand experience of the corporate life. This study considers some of the findings and work that help to provide a better understanding of the nature of organizations which also includes the examination of the structural aspects of an organization and how it impacts on the performance of employees in an organization .An organization is a collection of interacting and independent individuals who work towards common goals and whose relationship are determined according to a certain structure.

Arnold et al. (1998), this definition provides a useful starting point for an examination of organizations. The organization design is the overall arrangement of the various roles, processes and their relationships in the organization. It is a means to accomplishing the overall goal. The structure is not an end itself .The Azeri Credit Union is a financial institution that provides financial services to its members. The organisation structure of the credit union plays a significant role in shaping the behavior and performance of its employees. The study on the effects of organisation structure on employee performance at Azeri Credit Union aims to understand how the design of the organization impacts employee productivity, job satisfaction, and overall performance.

Scholars like (Chegini,et al 2013,Rajaccpour,Azizalah Mahmoud and shokouhi 2012: Teixeira ,Koufteros , and Peng,, have all stated in their work those dimensions are as regards to Organisation structure some dimensions presented were the same while others were different. In literature scholars have agreed that performance is major issues in most organisations and in day to day activity of organizations around the world they used different organisations structure which includes the following;

1.2 Statement of problem

Organisation structure is a critical aspect of any business organization, as it defines the hierarchy of authority, communication channels, and the distribution of resources within the company. However, the impact of organisation structure on employer’s performance has been a topic of debate among scholars and practitioners. This project aims to investigate the effect of organisation structure on employer’s performance, specifically focusing on the relationship between the two.

1.3 Research question

1.3.1MainResearchQuestion         

What  is the impact of organisation structure on employer performance?

1.3.2   Specific Research Questions

1. How does the hierarchical structure influence employees performance level within the organization?
2. What are the effects of a flat organisation structure on employees performance ?
3. In what way does a matrix structure enhance employees performance within an organization?

1.4   Objectives

1.4.1 Main research objectives

This research is aimed at investigation the effect of organisation structures on employer’s performance

1.4.2 Specific Research Objectives:

1. To determine the level of hierarchical structure influencing employees performance within the organization
2. To investigate the effects of a flat organisational structure on employees performance
3. To access the level of matrix structure in enhancing employees performance within an organisation           

1.5 Research Hypothesis:

HO1: The level of hierarchical structure has no significant influence on employee’s performance within the organisation

HO2: Flat organisational structure does not have any significant effects on employee’s performance

HO3: The level of matrix structure does not enhance employees performance within an organisation