Organisational Structure and Firm Performance - A Study of UK Firms

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ABSTRACT

With this thesis, I examined the literatures, opinions and views addressing the empirical relationships, between organisational structure and organisation performance of companies within United Kingdom. By definition, organisational structure is an instrument that coordinates and restricts the activities of its concerned members. The structure of the organisation acts a system, which is strong and efficient as it can increase the probability of improving the performance of workers and hence, it can positively influence the productivity of the organisation, maintains competition and reduces and deals with the conflicts and problems faced by the employees if the organisational setup is irrational and chaotic. The designers of organisational structure believe that their role is not limited to the “preparation of the instructions”. In fact, they believe their role is to constantly improve the processes and environment of the organisation. Their main duty is to evaluate and analyze the performance of its human resources relatively to organisation resources, identify root causes of any abnormalities or problems, analyses and implement various solutions that will sustain changes. While traditional organisational structure models have become a controversial and debatable topic, nearly everyone concur that a systematic and well structured method is needed to promote constant performance and to sustain growth. I went further to identify and outline few causes that hindered organisational performance regardless of its structure, like the work force oblivious of the organisation's mission, inadequate information on project and individual experience not in tandem with mission and project's requirements, leadership requirements, etc. The present structure of the company or firm can be the primary obstruction in achieving organisational aims and objectives. At the same time, it may influence performance. This study concentrates on evaluating and studying the nature and the magnitude of the relationship between the structure of the organisation and performance of some small, medium and large size Organisations in U.K. The results of this study will help decision, and policy makers in their decision making process.

ACKNOWLEDGEMENTS

I would like to express my gratitude to all those who gave me the possibility and support that are required to complete this thesis. I want to thank Department of Business Administration, Blekinge Institute of Technology, Sweden, for the permission to commence this thesis in the first instance, to do the necessary research works and to use every resource and information available. My special thanks go to our mentor Dr. Thomas, for his supports and time throughout the period of writing the thesis.

I am bound to Mr. Charlie Weir, Dr. Sandra west Kings, Carley, Lin and Prietula for their vital data and stimulating information without them, I wouldn't have got such a first class/hand information to complete this work.

I am deeply indebted to my supervisor Prof. Dr Anders Hederstierna from the Blekinge Institute of Technology, Sweden whose help, stimulating and uplifting suggestions and encouragement I received throughout the period of the research and writing of this thesis.

I also would like to thank my friends and family, specifically ...