The Effects of Organizational Structure on Organizational Performance: The case of Enterprises and Industries Development Main Department, Wolaita Zone, Southern Region, Ethiopia.

Abstract

The objective of this study was to examine the effects of organizational structure on organizational performance of the Enterprises and Industries Development Main Department of Wolaita Zone. The research was explanatory and descriptive in its type. In this research, quantitative and qualitative methods were deployed and primary and secondary data were used. The study was a census with total study population of 102 employees who work for the study organization, and that was finite. Descriptive and inferential analysis methods were applied for quantitative data analysis where qualitative data were analyzed using qualitative method. Multiple Linear Regression Analysis was applied for demonstrating relationship between the study variables. The finding revealed that the organization structure of Enterprises and Industries Development Main Department is unfit for the functions expected to lead towards achieving the objectives and goal. As a result, the organization was not able to perform properly and it did not meet its objectives and goals as expected. In order to meet its objectives and goal, the organization must revisit the structure and eliminate those undesirable settings and bottlenecks along the current structure. The organization should redesign the organizational structure; put in place appropriate departmentalization, establish tangible decentralization, ensure appropriate job specialization and establish customized formal regulations rather than operating on basis of commands and oral instructions of poetical or administrative officials.