EFFECT OF ORGANIZATIONAL STRUCTURE ON EMPLOYEE PERFORMANCE OF ENTREPRENEURIAL FIRMS IN DELTA STATE, NIGERIA
Keywords:
Employee Performance, Entrepreneurial Firms, Organizational Performance, Organizational Structure, Organogram.Abstract
This study investigated some selected entrepreneurial organizations in Asaba, Delta state with a
view to ascertaining the exact effect of Organizational Structure on Employee Performance. An
employee-centric organizational structure is the bedrock for employee productivity and
organizational growth. This study employed a systematic review of over 80 research articles from
several international and reputable journals of related topics in order to determine the nature of
connections and comprehend the motivations, viewpoints, theories, empiricism, and opinions of
scholars and their findings. This study discovered that Decentralization of control has a direct and
positive connection with employee performance and organizational growth and is also essential for
employee productivity and organizational performance. It also speeds up the delivery of employee
services to clients and the company. It engenders self-motivation and innovation and creativity. The
study found that decentralization has a beneficial impact on psychological empowerment whereas
centralization has a negative one. This indicates that employee empowerment and the
decentralization aspect of organizational structure are significantly correlated. This study
concludes that performance of the employee and the general performance of the organization
strongly depend on the nature of the organizational structure adopted and that there are a number
of organizational structure components that can improve or reduce worker performance. This study
also concluded by indicating that companies who do not have a structure that is suitable for their
staff will undoubtedly experience issues with employee performance. This study therefore
recommends an employee-centric organizational structure for improved employee and
organizational performances. Every firm looking to improve employee performance is advised to
take structural dimensions of the organization into cognizance.