IMPACT OF ENVIRONMENT ON THE STRUCTURE OF BUSINESS ORGANIZATIONS: A STUDY OF FIRST INLAND BANK PORT HARCOURT AREA

ABSRACT

This study investigated the impact of environment on the structure of business organizations. The theoretical framework of the study is drawn from Thompsons organization theory as cited in Onwuchekwa 2000. It focused on identifying the type of environment which business organizations faces and how appropriate structure should be employed in order to improve the performance To solve the problem under investigation, a study of First Inland Bank PLC port Harcourt Area, was undertaken. The Port Harcourt Area of the bank is made up of 15 Branches with 420 full time employees, out of which 75 of them were senior management staff. Due to the nature of the problem under investigation, the 75 senior management staff constitute the population and was later reduced to 63 using the Yaro Yemeni technique to determine the sample size. Data collected through questionnaire and oral interview were analyzed through the use of Chisquare and coefficient of contingency to test the association and determine the relationship between the variables. Based on the findings, fororganization to improve on their performance there must be an appropriate match between the environment and the structure and the researcher concluded that the environment has a decisive impact on organizational structure. He therefore, recommended that a careful analysis of the environment should be undertaken regularly to improve organizational performance. By identifying the type of environment organization faces and match it with appropriate structure and also adapt organization to its environment.

TABLE OF CONTENT

Title page i

Certification ii

Approval page iii

Acknowledgement iv

Abstract v

List of Tables vi

Table of Contents vii

CHAPTER ONE

Introduction

1.1 Conceptual framework 1

1.2 Background of the study 2

1.3 Statement of problem 4

1.4 Objective of the study 4

1.5 Hypotheses 5

1.6 Significance of the study 5

1.7 Motivation of the study 6

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction 7

2.2 Business Environment 7

2.3 Analysis of Business Environment 8

2.4 Management of Business Environment 18

2.5. Growth Strategies for Responding to Environmental Constraints 23

2.6. Environment and Structure 27

2.7 Forms of Organization Structure 28

2.7.1 Environmental Impact on Organizational Structural 32

2.8 Environmental Influence on Organizational Performance 37

2.9 How Organizations adapt to their Environment 39

CHAPTER THREE

Research Design and Methodology

3.o Introduction 43

3.1 Design of the Study 43

3.2 Population of the Study 43

3.3 Sample and Sampling Technique 44

3.4 Sources of Data 45

3.5 Reliability and Validity of Instrument 45

3.6 Method Data Collection 46

3.7 Method of Data Analysis 46

Chapter Four

Data Presentation and Analysis

4.1 Introduction 49

4.2 Formation 49

4.3 Objective/Mission Statement 50

4.5 Performance 50

4.6 Testing of Hypothesis 51

4.7 List of Finding from Data Presentation and

Analysis 78

Chapter Five

Discussion and Findings

5.1 Introduction 82

5.2 Discussion of findings from Hypotheses 82

5.2.1 Findings from Hypotheses One 82

5.2.2 Findings from Hypotheses Two 83

5.2.3 Findings from Hypotheses Three 84

5.2.4 Findings from Hypotheses Four 85

5.3 Implication of Findings 86

Chapter Six

Summary, Conclusion and Recommendations

6.1 Introduction 87

6.2 Summary 87

6.3 Conclusion 88

6.4 Recommendations 89

6.5 Suggestions for Further research 90

References 91

Appendix I 94

Appendix II 98

Questionnaire 98