The Assessment Of Organizational Structure In Supporting Projects: The Case Of EthioDer Plc
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Date
2018-06-13
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Addis Ababa University
Abstract
Project delivery for EthioDer private limited company has encountered completion delay and loss of team spirit in recent times. One of the sustainability focused strategies adopted by the EthioDer is by implementing capital projects in order to meet the medium and long term goals. However, studies have shown that an appropriate organizational structure is contingent upon the type of work performed and the environment in which the organization conducts its business functions and employees. Every organization must have a well-defined organization structure if it wants to be very competitive, productive, efficient, and dynamic if it wants to survive and grow by meeting the internal team and external consumer demand. Therefore, the main objective of this project work is to understand the basis of organizational structure used by EthioDer, to identify project implementation problem and to examine the cause and effect elements of the current structure on project team. According to David Thomas (2003), one of the main reason for using an inductive approach is to condense extensive and varied raw text data into a brief summary format. The research considered an inductive approach using qualitative research method for data collection and analyzing process. Sample of the various categories of employees was taken from the company’s total population using snowball sampling technique. Interviews and focus group discussions were employed as the main tool for data collection exercise. Table Method was adopted at data analysis stage. The findings indicated that the organizational structure in place is a functional type of structure where its departments are grouped by areas of specialization within different functions. In EthioDer, the project generally occurs within the functions. Team members complete the project work over and above their responsibilities to normal departmental work. Communication primarily occurs within the same function. The study further revealed that the structure is the source of major problem negatively impacting on project performance (creating implementation delay) and the project team’s output. Based on this, a ‘projectised’ organizational structure (a project equipped with its own resources and functions) to be adopted among other recommendation made by the study.
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organizational structure, challenges, project performance