Examining the Effect of Organization Structure on Employee Performance: The Case of Awash Wine

Abstract

This paper is carried out to examine the effects of organizational structure on employee performance in Awash Wine S.C. The researcher intends to investigate the effects of organizational structures on employee job performance in the organization. The researcher also tries to find out the response of the employees on the organizational structures and their effects on the employee’s performance. The sample of the study consisted of 196 employees through structured questionnaires. After collecting, sorting, & coding the raw data SPSS 20 was used to analyze the data. Descriptive statistics, correlation, and regression analysis models were used to analyze the quantitative data. Based on this, the result of the correlation analysis showed that all of the independent variables listed in the study have a positive relationship with the dependent variable, In the regression analysis span of control, level of hierarchy, decentralization and formalization have significant effects on employee performance and standardization have no significant effect on employee job performance in the organization. The study finding concludes that organizational structures have a positive and significant effect on employee job performance in an organization. The study also showed that building a good organizational structure is important for the employee to perform well in their work. The findings further established that group decision-making (decentralization) helps employees to achieve higher employee performance. In addition, studies provide relevant information to the organization to enhance its endeavor to meet both current and long-term demand, so this study recommends that an organized and clearly stated organization structure can be the best input to employee performance in the organization. Other organizations can use this as a benchmark.