BAHIR DAR UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

MASTER OF BUSINESS ADMINISTRATION
MANAGEMENT THEORY AND PRACTICE MINI RESEARCH
An Investigation In To Organizing Status and Way of Forward
Practice In Case Of Tsehay Paint Company

NAME ID No
1. Eden Tilahun…………… BDU 1301633
2. Mitiku Awoke ...................BDU1301768
3. Abebech Mulugeta ……... BDU 1301596
4. Eshete Getawa………….. BDU 1301703
5. Balemlay Alehegn........... .BDU 1301622
6. Mulugojam Mezigeb……. BDU 1301741
 CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study

1.2. Background of the Organization

Different paint factories are established in Ethiopia. Among these Tsehay paint factory
is one of the recent factories. Tsehay paint factory established in 2008 E.C by Baheran
trading and Turk PLC Shared Company at Bahir Dar city. The company produce over
500 type of high quality paints and paint related items. Tsehay Paints Company covers
150,000 meter square area. The company situated in the suburb Bahir Dar about 8
kilometres away from the centre of the city in the western direction, the place is
commonly known as industrial villages.

The company starts its operation 100 million ETB as initial capital. Most of the raw
material the company uses to produce its product is imported from outside countries
like India, Bangladesh, and UAE. The company have 400 employees from which 350
employees are permanent and the remaining 50 are temporary workers. Tsehay Paint
Company takes ISO training in 2013 E.C and also certified ISO 9001. The ISO 9001
quality management system attract more customers and increase the confidence of
customers on the company in a way the company supplying products with a desired
quality by the company internationally recognized system.

Tsehay paints factory uses calcium carbonate as a major row to produce paints.
Tsehay paint company purchase and install new machine in year 2011E.C, this
machine is used to crush the lime stone to produce calcium carbonate powder
(CaCO3) this machine creates competitive advantage for the company.

1.2. Objective of the study

1.2.1. General objectives

The main objective of the study is to investigate organisational status and to forward
ways of improvement related with the organizational structure.
1.2.2. Specific objectives

1. To determine the level of organizational status in Tshay Spindle Company.

2. To investigate the influence of organizational structure on organizational
performance.
3. To suggest ways of improvement organizational performance through
organizational structure.

1.3. Research Question

1. What is the level of organizational performance/status in Tsehay Spindle

Company?
2. How organizational structure influence organizational performance or status?

3. How to improve organizational performance or status through organizational

structure?

1.4. Significance of the study

The study would have both practical and theoretical significance: It will advance
knowledge and understanding of the student. The study will serves as initial reference
for other researcher who wants to conduct study on such similar matter. The study
will also serve as an input for tsehay paint factory management bodies and decision
makers to reconsider the motivational package provide for teachers. Finally, this study
is requirement to the student researcher, for the partial fulfillment of BA degree in
Management from Dilla University.

1.5. Scope of the study

This studies scope is limited to Dilla University Business and Economics College.
The study will investigate the effects of motivational packages (Enhancing Teachers
salary, Fringe benefit, Promotion and Recognition) on teacher’s job performance
effectiveness. This study will adopt a specific research methods and methodologies

1.6. Limitation of the study

This study was had faced the following limitations: the study lacks to address all the
motivational factors that affect teachers’ job performance effectiveness. All findings
were based on the information provided by the respondents; thus, it would be
subjected to the potential bias and prejudice of the respondent involved. The studies
plan to use only questioner’s data collection methods, because a questionnaire
provides a suitable and relatively inexpensive method for collecting data, but
respondents may be unwilling to reply as a result the number of responses were not as
high as expected. Furthermore, to achieve the objectives of the study had been
affected by time and resource limitations.

1.7. Organization of the study

This study is mainly focus on the effects of motivational packages that can affect the
teacher’s job performance effectiveness. Thus, this paper would have five chapters.
The first chapter presents introductions of the study. The literature review of the study
is presented in part two. Part three presents the research design and methodology. Part
four provides data presentation, analysis and discussion of findings. Part five is the
final chapter which includes conclude and recommendations.
 CHAPTER TWO

2. LITERATURE REVIEW

2.1. Theoretical Review

2.1.1 Organizational structure

Organizing is the work of a manager performs to arrange and relate the work to be
done so that it may be performed most effectively by the people. allen, Louis A (1964)
series on general management function and activities, and their relevance to the
management of projects. Management organizing function and activities

The organizing function is carried out once a plan or an outline for how to achieve
some organizational goal, is in place. Organizing is the most critical of managerial
functions because of its ability to help or hinder an organizational plan and thus
profoundly affect organizational success. ( kabiru, F.C., Theuri, M. & Misiko, A.
2018). Influence of organizing as a management function on organizational
performance among agricultural state-owned corporations in Kenya. International
academic journal of human resource and business administration, 3(1), 100-125

Organizing involves identification of the activities, required for the achievement of

the objectives of the enterprise and implementation of plans, grouping of activities in
to jobs, assignment of jobs and activities in to the departements of the individuals,
deligation of responsibility and authority for performance and provision of vertical
and horizontal coordination of activities. chapter three basic management
functions(2013) retrived september 6, 2017 from
http://samples.jbpub.com/9781449688851/chapter 3 pdf

Organization is a social set up, which has a boundary that separates it from its
environment, pursues its own collective goals, and controls its own performance. For
managers, the term organization implies a formalized intentional structure of roles
positions. Owolabi Y. L. and Kingsley C. C. (2007), Evaluation of leadership and
Organizational Performance in Small Scale industries in Nigeria; A Case of Selected
Small Scale industries, Blekinge Institute of Technology, Master’s Thesis, pg 9
Sweden.

Organizational structure defines the formal division, grouping, and coordination of

job tasks (Robbins, 2005). Robbins, S.P. (2005) organizational behavior, 11th edition,
new delhi, prentice-hall.

Organizational structures are a method of classifying tasks to duties and organize

them. Organizational structure is a blueprint that shows relations on organizational
activity to achieve the organization goal. Organizational structure refers to the models
of internal relations of organization, power and relations and reporting, formal
communication channels, responsibility and decision making delegation is clarified.
Organization structure should create conductive environment for decision making,
harmonious relationship with in the organization (Gholam Ali Ahmadya, Maryam
Mehrpourb,*, Aghdas Nikooraveshb. 2016) 3rd International Conference on New
Challenges in Management and Organization: Organization and Leadership, 2 May
2016, Dubai, UAE Organizational Structure.

Organizational structure is a group of people occupying a formal structure of position

to achieve a particular purpose. They are institutions that enable society to pursue
goals that could not be achieved by individuals’ action alone. An organization is
generally defined as a structure of relationships to get work done. It is a social system
involving interpersonal relationships. Akande. O. O and Ojokuku R. M, (2008), Basic
principle of management a text for management, published by apex books limited.
Pg8

Organizational structure can be affected by goals, strategy, environment, technology,

organization size. These variables are key and content-based and indicate the entire
organization and its position between the organization and environment. Content
variables can be important as they show organization and the environment in which
there are structural variables. Structural variables indicate internal features of an
organization and present a basis by which the organizations can be measured and their
structure features can be compared with each other. (Rabinz, Translated by Parsian
and Arabi, 2012). Rabbinz, S. 2012. The basics of organizational management.
Translated by Parsian and Arabi. Tehran. Cultural research office.
2.1.2. Work specialization
The quality of an organization’s human resource determines its technical skills,
knowledge, experience, creativity, relationship with customers and other stakeholders,
and productivity. Due to the increasing importance of human capital, it has become
inevitable for organizations to pay attention to the development of its employees.
Employee development is a concept that entails acquisition of advanced knowledge,
skills, and experiences by an employee. One of the organizational factors that have
been linked to employee development is work specialization. Work specialization,
also known as division of labour, is the extent to which tasks within the organizations
have been subdivided into separate jobs. It is one of the organization design elements
and entails breaking down tasks to the lowest level and designing jobs for each
segment. Specialization enables employees to focus on specific task hence allowing
them to build expertise and experience ( Influence of work specialization on employee
development: A case of Telkom Kenya Nakuru branch in Nakuru County)
2.1.3. Departmentalization
Departmentalization means how to combine the division of work reasonably. It is the
grouping of related functions into manageable units to achieve the objectives of the
enterprise in the most efficient and effective manner. Grouping related functions into
manageable units to achieve the objectives of the enterprise in the most efficient and
effective manner is departmentalization. A variety of means can be utilized for this
purpose. The primary forms of departmentalization are by function, process, product,
market, customer, geographic area. (effects of organizational structure on job
satisfaction in the nigerian financial sector: empirical insight from selected banks in
lagos state)
2.1.4. Chain of Command
A clear chain of command can be important to operational efficiency and
accountability, understanding the human side of leadership and motivation of
employees as well as supervisors should be considered as well. A chain of command
needs to be in place to provide the structure needed for decision making, functional
accountability and performance efficiency.

2.1.5.The concept of authority and responsibility

The concepts of authority and responsibility are central to the analysis and design of
organizational systems. These concepts, though extensively dealt with in theory as
well as practice, are at best evasive.

The concept of authority is very closely linked with the concept of responsibility.
Responsibility is considered as the work assigned to a position or function. It refers to
the mental and physical activities which must be performed to carry out a task or duty.
Authority is defined as power based on rights to control and concomitant obligations
to obey. An organizational system is conceptualized as a set of authority-responsibility
relationships among different components at various hierarchical levels (modeling and
analysis of authority-responsibility relationships in an organizational system-a
physical system theory approach)

2.1.6. Unity of command

Unity of command means that an employee should receive order from one superior
only. It means that no employees should be subjected to the other of more than one
superior. It stands for single boss for each person. (Dr.S.B.M. Marume, R.R.
Jubenkanda, 2016) the basic concept and principle of unity of command and the span
of control, international journal of business and management invention.
Unity of command means organizational principle that each person within the line of
authority should be responsible to only other person. An employee who is responsible
to various people in authority will presumably be confused, ineffective and
irresponsible, while an employee receiving command from one supervisor is
methodical, efficient and responsible. W.Fox and I.H. Meyer: Public Administration
Dictionary, Juta and CoLtd, 1995(ISBN: 0-7021 3219 5)
2.1.7. Span of control
The principle of span of control means the number of subordinate or the unit of work
that an officer can personally direct, control and supervise. It is the number and range
of direct, habitual communication contacts between the chief executive of an
enterprise and his principal fellow officer. (Dr.S.B.M. Marume, R.R. Jubenkanda,
2016) the basic concept and principle of unity of command and the span of control,
international journal of business and management invention.
Span of control is one of the earlier principle of administration which states that there
is an upper limit to the number of subordinate any administer can directly supervise,
generally set at 12, and advises administrators to eliminate any violation of this
principle by reducing the number of officials reporting to them by either emerging
certain offices or stretching out the scalar chain. W.Fox and I.H. Meyer: Public
Administration Dictionary, Juta and CoLtd, 1995(ISBN: 0-7021 3219 5)

Centralization The relative degree of centralization within an organization is signified

by the “hierarchy of authority” and the “degree of participation in decision-making”,
as these aspects of structure reflects the distribution of power across the entire
organization. A centralized organization will typically have a high degree of
hierarchical authority and low levels of participation in decisions about policies and
resources;

Centralized decision-making suggest that it leads to better performance by facilitating

greater decision speed, providing firm direction and goals, and establishing clear lines
of hierarchical authority thereby circumventing the potential for damaging internal
conflict. centralization, organizational strategy and public service performance

2.1.8. Decentralization
Decentralization is the devolution of decision making authority from the central office
to local entities. It can be horizontal (decision-making is divided among those at the
central office), vertical (downward), organizational, or political (shared by parents and
citizens’ groups) where those most affected by public decisions are given a direct
voice in how the decisions are made. Decentralization means more than granting
people the right to manage the resources allocated to them. It includes giving them a
role in defining their needs.( Decentralization: An International Perspective).

2.1.9. Employee Empowerment

Employee empowerment is a continuous variable which means that people can be

viewed as more or less empowered rather than empowered or not empowered.
Employee empowerment is not a global construct generalizable across life situations
and roles but rather, specific to the work domain. Empowerment is about making a
decision when there is no explicit system or rule and acting on it. Empowerment is
thus seen to be not an enduring personality trait generalizable across situations but
rather a set of cognitions shaped by work environment. Employee Empowerment

2.1.10. Formalization
The formalized organizational structure focuses on roles and positions rather than the
people in the position. Formalization is the process of creating a formalized structure
and includes the maintenance of that formal structure overtime. Formal organizational
structure imposes sanction on the manager of the organization. It is described as an
institutional configuration or arrangement outlining the division of labour in a rational
and conscious manner [13]. Influence of Organizational Structure on Business-IT
Alignment: What We Do (Not) Know . Gideon Mekonnen Jonathan [0000-0001-
6360-7641]
2.1.11. Mechanistic organizational structure
The mechanistic type of organization has been described as: the form taken when an
organization first starts out; it was a polar extreme of an organizational structure; a
mechanistic organization was the type of organization, which was described by,
"specialized differentiation between jobs. The mechanistic structure was a strict sort
of specificity, with regard to employee responsibility and function in the workspace.
The mechanistic structure was typically a top-down style of directives transfer, from
upper management, with some upward flowing feedback, whereas the organic
structure seemed to be a more natural sort of downward flow of advice and counsel
from upper management and the employees were self-directing and empowered to
perform the work that needed doing; the employees achieved the results needed,
according to the employees' autonomy and the job's requirements.[]

2.1.12. Organic organizational structure

An organic organization was the type of organization, which was at the opposite polar
extreme from a mechanistic organizational structure, and was characterized by:
"overlapping responsibilities, less specialization, and greater generalization among
positions. The organic organizational structure was found to be more typical of
organizations that had evolved over time, were more established, and the type of
organization that was characterized as having found a market niche in the business
community.The organic seemed to have more of a flow where in the employees could
flow with the work, job responsibilities, and the eventual results achieved. There was
a profound difference in the communications that took place in the organizations.

(Assessing Mechanistic and Organic Organizational Structures: Measuring

Organizational Uncertainty and Determiningan Organization's Proper Structure)
2.1.13. Contemporary organizational designs These designs are the flexible
organizational design that job tasks are divided, grouped and coordinated for response
to dynamic environmental factors. To face highly dynamic and complex environment
contemporary organizational structure is very important. (Stephen P. Robbins, 2000).

Forms of contemporary organizational design

Team based structure

In team base structure, the entire organization is made up of work groups or teams
that perform the organization work. In this structure employee empowerment is
crucial because there is no line of managerial authority from top to bottom. Rather
employee teams are free to design work in the way think best. However, the teams are
also held responsible for all work activity and performance result in their respective
areas.

In large organization, the team structure complement what is typically a functional or

divisional structure. This allows the organization to have efficiency of bureaucracy
while providing the flexibility that team provide to improve productivity at the
operational level.

Team based structure have its own advantage and disadvantage. The advantages of
team based structure are easy integration, better management and more control and
greater productivity. The disadvantages of team based structure are significant
overheads and lead to opinion conflicts

2.1.14. Matrix- project structure

It is a structure that is project base means they assign different projects to employees
to do and as soon as they are done with their project they move to another one but
they are specialist in those areas which they are working in. advantage of this
structure is that it very flexible and can change with the environmental changes like as
they using different people for different task they can work with in different situation
and the disadvantage is that it is really difficult to find the right person to the right job
like tasks and projects more over one can come up with conflict while working with
in for the project ( EW Larson 1989).

2.1.15. The boundary less structure

Boundaries in a sense that organizations which are in to e-business that is which are
web based organizations. The positive factors in this kind of organizational structure
is that is highly reactive to the quires they are in to more over they can solve problems
related to their customers it will be highly flexible and encore low cost more over they
can change with the environmental change and customers will easily access them
from their home, however it has some disadvantages like they should have proper
securities setups for payments and all, and it sometimes hard to control situations and
to communicate the right problem so communication difficulties are there in boundary
less structure (R Leifer 1977).

Types of boundary less organization

Network organization

In network organization, various functions are coordinated as much by market

mechanism as by managers and formal line of authority. Emphasis is placed on who
can do what more effectively and economically rather than on fixed ties dictated by an
organization chart. All of these assets necessary to produce a finished product or
service at present in the network as a whole not held in house by one firm (Mary
Coulter 2003).

Virtual organization

In a virtual organization, an alliance of independent companies shares skill, cost and

access to one another market. It consists of a network of continually evolving
independent companies. Each partner in virtual organization contributes only in its
area of core competencies. The key advantage of virtual organization is their
flexibility and adaptability (Stephen P.Robbins 2003)

Modular organization

In modular organization, organizations perform a few core functions and outsource

noncore activities to specialists and suppliers. Modular organizations are like hubs
that are surrounded by networks of suppliers that can be added or removed as needed.
By out sourcing noncore activities, modular organizations are able to keep unit costs
low and developing new products more rapidly. They work best when they focus on
the right speciality and have good suppliers (Stephen P.Robbins 2003).
2.1.16. Organization design challenges

In today’s world the organizations are increasing rapidly and having large number of
operations that required good and highly control able organizational structure, now a
days the structure are so complex that it is sometimes hard to keep a record of having
a span of control within the organization so it is one of the important factor to keep
your employee connected and working to meet the organizational goal and targets
efficiently and effectively (R Galliers 2003).

2.1.17. Building learning organization

It is one of the core factor to make organization the best in the sense that the employee
who come to work in organization should learn something new like they should have
some workshops and training sessions for them just to cope up with the environmental
changes it helps organizations to be stable and to work for long term profit and benefit
with fulfilling their goal and targets efficiently and effectively (DA Gravin 1985)

2.2. Empirical Review

Laleh(2014);conducted a study which investigated the relationship between

organizational structure and effectiveness in melat bank branches in kerman province
as case study. The data was collected from 13 respondents out of 84 managers. The
findings revealed that a strong significant relationship exists between organizational
structure and organizational effectiveness; hence, the managers are required to
recognize each of the organizational structures to increase effectiveness and
implement the most proper structure for their organization. a survey on the
relationship between organizational structure and effectiveness ;( case study; melat
bank branches in kerman province)

Pelin Kanten(2014);studied the effects of organizational structures and learning

organization on job embeddedness and individual adaptive performance. the data was
collected from 216 employees of hotel establishments by the survey method were
analyzed using the structural equation modelling technique. The results of the study
indicate that organic organization structure has been found to have no direct effect on
job embeddedness and individual adaptive performance. In addition to this,
mechanistic organization structure affects job embeddedness positively, while it has
no direct effect on individual adaptive performance. However, learning organization
affects both job embeddedness and individual adaptive performance positively and
learning organization has a fully mediator role in the relationships between organic
organization structure and job embeddedness. (The Effects of Organizational
Structures and Learning Organization on Job Embeddedness and Individual Adaptive
Performance)
Olajide (2015), conducted on the effects of organizational structure on job satisfaction
in the nigerian financial sector in lagos state banks. A total of 335 questionnaires were
distributed to respondents, 280 of the questionnaires were filled and returned and only
259 of the administered questionnaire were found useful for data analysis. Findings of
the study show that there is a correlation between organizational structure and
components of job satisfaction via need for dominance, achievement and autonomy.

(effects of organizational structure on job satisfaction in the nigerian financial sector:

empirical insight from selected banks in lagos state).

Campbell, Fowles and Weber (2005) in their study ‘Organizational structure and job
specification in public health nursing’ found that there is a significant relationship
between organizational structure variables and job satisfaction for public health nurses
employed in down state Illinois local health departments. 764 questionnaires were
administered to non-managing nurses in three Belgian general care hospitals and the
results showed negative effect of centralization and positive effects of specification
and formalization of nurses on job satisfaction.

(Organizational Structure and Job Satisfaction in Public Health Nursing).

 CHAPTER THREE
3. RESEARCH METHODOLOGY.

3.1. Research Design

Research design addresses important issues relating to a research project such as
purpose of study, location of study, type of investigation(exploratory, descriptive and
explanatory study), extent of researcher interference, time horizon and the unit of
analysis. For the reason of investigating the status/ performance level of Tsehay Paints
to forward ways of improvement related with organizational structure. The
researchers used quantitative and qualitative approach of study design to collect data
from employees of Tsehay paint factory. Additionally, secondary data was utilized and
strengthen the research. For that, reference books, articles, academic journal, internet,
web site and any other related reading materials are used. Finally, the result obtained
from the survey method through: questioner was analysed and conclusions would be
drawn and recommendations forwarded.

3.2. Source and type of data

There are two types of data sourcing. These are primary data and
secondary data that were used in order to obtain clear and precise information on the
topic being explained. Both primary and secondary data would be implemented in
order to get the maximum result.
Primary Data: The primary data are those which are collected afresh and for the first
time, and thus happen to be original in character (Kothari, 2004).The source of such
type of data would be collected from the respondent by questionnaires.
Questionnaire is the necessary primary data would be collected through the use of
questionnaire dispatched to the employees of Tsehay paint factory.
Secondary Data: The secondary data, on the other hand, are those which have
already been collected by someone else and which have already been passed through
the statistical process. The researcher would have to decide which sort of data the
researcher would be using (thus collecting) for the study and accordingly the
researcher would have to select one or the other method of data collection. The source
of such type of data have been books, journal, articles, reports, different websites, and
both published and unpublished documents related with the topics of the study.

3.3. Population and sampling

Target Population
The target population of the study is 400 employees of Tsehay Paints Factory

Sampling technique and sample size

Having chosen a suitable sampling frame and established the actual sample size
required, you need to select the most appropriate sampling technique to obtain a
representative sample. The researcher was use probability sampling technique.
3.4. Sample Size Determination
The sample size refers to the number of elements selected from a given population.
The sample size for this study will be based on the mathematic model by Taro Yamani
(1964) provides a simplified formula to calculate sample sizes. In this study the
researchers will select 80 sample respondents from currently 400 employees ‘of
tsehay paint factory. Thus, the sample size of the study is calculate using the
following formula

e
¿
¿
1+N ¿
N
n=
¿

Where: n = Sample size, N = the population size, Sample size= 80,

e = Level of significance (0.10) at 90% confidence level.

3.5. Measurement/Survey instrument

3.6. Methods of data analysis

This deals with analysis and presentation of data gathered from sample population of
tsehay paints factory employees and process through which the result obtained. After
collected the required data through questioner we analysed using descriptive method.
The collected data using questionnaire is organized by using tables and descriptive
statistics mainly percentage.
 CHAPTER FOUR

4. ANALYSIS, INTERPRETATION AND PRESENTATION OF DATA

4.1. Introduction

This chapter deals with the analysis and interpretation of data gathered through
questionnaire from the respondents. We collect the entire questionnaire we distributed
to respondents, so the response rate of this research is 100 percent. Therefore, the
collected data using questionnaire can be analysed and presented as follow.

4.2. Demographic characteristics of respondents and response rate

The researchers administered the questionnaires to 80 sampled populations in the
study. So, 80 questionnaires were correctly filled and returned to the researcher due to
the higher effort and take long period of time with the total response rate of
questionnaires have 100%. So, the analysis was carried out with the data found from
80 respondents and hence the overall response rate is 100%. The demographic
characteristics of the respondents included gender, age, educational qualification,
marital status and experience in the following table.
Table 4. 1.demographic data

Demographic data Frequency Percent (%)

Male 50 62.5
Gender Female 30 37.5
Total 80 100.0

Married 38 47.5
Marital status Single 37 46.25

Divorced 5 6.25
Total 80 100.0
20-30 17 16.1
31-40 42 61.3
Age 41-50 14 19.4
above 50 7 3.2
Total 80 100.0
<1Years 15 18.75
Work experience 1-4 Years 50 62.5

5-10 Years 15 18.75

>10 Years 0 0

Total 80 100.0
Educational level Diploma 59 73.75

Bachelor degree 17 21.25

Master’s 4 5

Total 80 100.0

Source: survey data

As table 4.1 indicated above, from a total of 80 respondents, 50 (62.5%) were males
whereas the remaining 30 (37.5%) were females. The marital status of respondents,
38(47.5%) are married, 37(46.25%) are single and 5 (6.25%) of respondents are
divorced.17(16.1%) of respondents are between 20-30 age, 42(61.3%) of respondent
are between 31-40, 14(49.4%) are between 41-50 and 7(3.2%) of respondents are
above age of 50. 15(18.75%) of respondents work experience is less than 1
year,50(62.5%) of respondents work experience is 1 up to 4 years, 15(18.75%) of
responden6 years and 0 (0%) respondents are work experience greater than 10 years.
The educational background of respondents, 59(73.75%) of respondents educational
background is diploma, 17(21.25%) of respondents have bachelor’s degree and 4(5%)
of respondents have masters educational background. Most of the respondents are
male, married, between 31-40 age groups, 1-4 years’ work experience and have
diploma educational background.

4.3 Work specialization

Table 4.2 Work specialization

Alternatives Number of Percentage

respondents
Strongly agree 8 10 %
Agree 32 40 %
Neutral 15 18.75 %
Disagree 20 25 %
Strongly dis agree 5 6.25 %
Total 80 100 %
Source: survey data

As table 4.2 shows, from the total respondent 8(10%) of strongly agree with the occurrence of
work specialization in the factory. 32(40%) of the respondent agree with that there is work
specialization in the factory. 15(18.75%) of the respondent are neutral to respond for the work
specialization. 20(25%) of the respondent disagree with the availability of work
specialization. 5(6.25%) of the respondent strongly disagree with the availability of work
specialization. So, majority of the respondent agree that there is work specialization in the
Tsehay paints factory.

4.3. Departmentalization
Table 4.3. Departmentalization

Alternatives Number of respondents Percentage (%)

Strongly agree 33 41.25
 Agree 29 36.25
Neutral 10 12.5
Disagree 3 3.75
Strongly disagree 5 6.25
Total 80 100
Source: survey data

As table 4.3 shows from the total respondent, 33(41.25 %) of them strongly agree
with there is department in the factory. 29(36.25%) of the respondent agree with that
there is department in the factory. 10(12.5%) of the respondent are neutral to respond
that there is departmentalization in the factory. 3(3.75%) of the respondent disagree
with that there is departmentalization in the factory. 5(6.25%) of the respondent
strongly disagree that there is departmentalization in the factory. Therefore, majority
of the respondent (33(41.25%)) strongly agree that there is departmentalization in the
Tsehay paints factory.

4.4 chain of command and authority

Table 4.4

Alternatives Number of respondents Percentage (%)

Strongly agree 25 31.25
Agree 35 43.75
Neutral 8 10
Disagree 8 10
Strongly disagree 4 5
Total 80 100
Source: survey data

Table 4.4. Shows that from the total respondent 25(31.25%) strongly agree that there
is a continues line of authority that extends from upper level of an organization to
lowest level of an organization and the managers perform their task from the authority
which emanates from their position. 35(43.75%) of the respondents agree with there is
chain of command in the factory and managers perform their task the authority that
emanates from their position. 8(10%) of the respondents are neutral to respond.
8(10%) of them disagree with there is chain of command in the factory and managers
perform their task the authority that emanates from their position. 4 (5%) of the
respondents strongly disagree with there is chain of command in the factory and
managers perform their task the authority that emanates from their position.
Therefore, majority of the respondent (35(43.75%)) that there is continues line of
authority that extends from upper level of an organization to lowest level of an
organization and the managers perform their task from the authority which emanates
from their position.

4.5. Unity of command

Table 4.5

Alternatives Number of respondents Percentage (%)

Strongly agree 6 7.5
Agree 9 11.25
Neutral 8 10
Disagree 40 50
Strongly disagree 17 21.25
Total 80 100
Source: survey data

Table 4.5, shows that 6(7.5%) of the respondents strongly agree with that there is
unity of command. 9(11.25%) of the respondent agree that there is unity of command
in the factory. 8(10%) of the respondent are neutral to respond. 40(50%) of the
respondents disagree with there is unity of command in factory. 17(21.25%) of the
respondent strongly disagree with that there is unity of command. Therefore, majority
of the respondents responds that employees in the factory have more than one boss
and they may report more than one manager.

4.6. Span of control

Table 4.6

Alternatives Number of respondents Percentage (%)

Strongly agree 10 12.5
Agree 20 25
Neutral 34 42.5
Disagree 8 10
Strongly disagree 8 10
Total 80 100
Source: survey data
Table 4.6, shows that from the total respondent 10(12.5%) of them strongly agree with
the number of employees under a manager are easy to effectively and efficiently
supervised. 20(25%) of them agree with there is span of control in the factory.
34(42.5%) of the respondent are neutral to respond. 8(10%) of them disagree with that
there is span of control in the factory. 8(10%) of them strongly disagree that there is
span of control in the factory. Therefore, majority of the respondents (34(42.5%))
didn’t know whether there is span of control in the factory because they are not
managers and have no information the numbers of workers under a manager.

4.7. Centralization and decentralization

Table. 4.7. Centralization

Alternatives Number of respondents Percentage (%)

Strongly agree 22 27.5
Agree 39 48.75
Neutral 7 8.75
Disagree 8 10
Strongly disagree 4 5
Total 80 100
Source: survey data

Table 4.7 shows, 22(27.5%) of the respondent strongly agree that there is
centralization decision making in the factory. 39(48.75%) of the respondent agree that
there is centralization in decision making in the factory. 7(8.75%) of the respondents
are neutral to respond. 8(10%) of the respondent disagree that there is decision
making in the factory. 4(5%) of the respondents strongly dis agree centralization in
decision making in the factory. Therefore, majority of the respondent (39(48.75%))
agree that there is a central decision making in the organization or the decentralization
decision making is low in Tsehay paints factory.

4.8. Formalization
Table 4.8

alternatives Number of respondents Percentage (%)

Strongly agree 22 27.5
Agree 29 36.25
Neutral 7 8.75
Disagree 10 12.5
Strongly disagree 12 15
Total 80 100
Source: survey data

Table 4.8 shows, from the total respondents 22(27.5%) of the respondents agree that
there is formalization in the factory. 29(36.25%) of them agree that there is
formalization in the factory. 7(8.75%) of the respondents are neutral to respond.
10(12.5%) of the respondents disagree that there is formalization in the factory.
12(15%) of the respondent strongly disagree that there is formalization in the factory.
Therefore, majority of the respondents (29(36.25%)) agree that employees in the
organization perform their job which are standardized and guided by rule and
procedures.

4.9. Organizational structure frames by considering the size and

strategy
Table 4.9.

alternatives Number of respondents Percentage (%)

Strongly agree 17 21.25
Agree 24 30
Neutral 29 36.25
Disagree 5 6.25
Strongly disagree 5 6.25
Total 80 100
Source: survey data

Table 4.9. Shows that 17(21.25%) of the respondents respond strongly agree that the
factory structures by consider the size and strategy of the factory. 24(30%) of the
respondents agree that that the factory structures by consider the size and strategy of
the factory. 29(36.25) of the respondents are neutral to respond ( they didn’t have
knowhow about how the organization frames its structure). 5(6.25%) of the
respondent disagree that the factory structures by consider the size and strategy of the
factory . 5(6.25%) of the respondents strongly disagree that the factory structures by
consider the size and strategy of the factory.

4.10 team structure

Table 4.10

alternatives Number of respondents Percentage (%)

Strongly agree 30 37.5
Agree 34 42.5
Neutral 6 7.5
Disagree 4 5
Strongly disagree 6 7.5
Total 80 100
Source: survey data

Table 4.10 shows, from the total respondents 30(37.5%) of them responds that they
strongly agree in availability of team or work groups. 34(42.5%) of the respondents
responds that they agree in availability of team or work groups. 6(7.5%) of them are
neutral to respond. 4(5%) of the respondents disagree in availability of team or work
groups. 6(7.5%) of the respondents in availability of team or work groups. Therefore,
majority of the respondents (34(42.5%)) responds that the factory have various work
groups and teams.

4.11 matrix – project structure

Table 4.11

alternatives Number of respondents Percentage (%)

Strongly agree 12 15
Agree 24 30
Neutral 25 31.25
Disagree 11 13.75
Strongly disagree 8 10
Total 80 100
Source: survey data

Table 4.11 shows, from the total respondents 12(15%) of them strongly agree that
there is matrix- project structure. 24(30%) of the respondents agree that there is
matrix- project structure. 25(31.25%) of the respondents are neutral or they didn’t
have knowhow whether there is matrix- project structure or not. 11(13.75%) of agree
in that there is matrix- project structure the respondents disagree. 8(10%) of the
respondents strongly disagree in that there is matrix- project structure. Therefore,
majority of the respondents didn’t have knowhow whether there is matrix project
structure.

4.12. Organizational learning

Table 4.12
alternatives Number of respondents Percentage (%)
Strongly agree 13 16.25
Agree 15 18.75
Neutral 37 46.25
Disagree 9 11.25
Strongly disagree 6 7.5
Total 80 100
Source: survey data

Table 4.12 shows, from the total respondent 13(16.25%) of them responds strongly
agree that the factory developed capacity to continuously learn, adapt and change by
knowledge management of employees. 15(18.75%) of agree that the factory
developed capacity to continuously learn, adapt and change by knowledge
management of employees. 37(46.25%) of the respondents are neutral or they respond
that they didn’t have knowhow about organizational learning. 9(11.25%) of them
responds disagree that the factory developed capacity to continuously learn, adapt and
change by knowledge management of employees.6(7.5%) of them responds strongly
disagree that the factory developed capacity to continuously learn, adapt and change
by knowledge management of employees
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