Contribution of Organisational Structures to Leaders' and Followers' Performances in Business Enterprises in Papua New Guinea

Abstract

An appropriate organisational structure that fits into the strategy enables the leaders and followers in enhancing their performances and thereby improving organisational performance. Studies are rare to find in the area of contribution of organisational structure to leaders and followers performance. Therefore, the present study is necessary. Data used for this study were collected from primary and secondary sources. A questionnaire was developed and administered together with interviews conducted. The 'T' test (t-value) and co- efficient of correlation (r - value) were employed in this study. This paper presents a comparative analysis of impact of organisational structure on leaders and f followers' performance using three factors viz., bureaucratic structure based, organic structure based and hybrid structure based and performance and satisfaction levels of followers and leaders. Data analysis indicates that the type of organisational structure impacts employee performance in terms of decision-making and implementation; control the process of operations implementation and building relationships and ultimately achievement of organisational goals. The analysis indicates that organic structure results in positive and high employee performance compared to the remaining two types of organisational structures. Therefore, it is suggested that business organisations should consider structuring their organisations around the characteristics of organic structure, unless otherwise the business environment is recessionary.