EFFECT OF ORGANIZATIONAL STRUCTURE ON THEORGANIZATIONAL PERFORMANCE OF EAST AFRICAN BREWERIESLIMITED (EABL) IN NAIROBI, KENYA
DOI:
https://doi.org/10.5281/zenodo.22819456Keywords:
organizational structure, organizational performance, decentralization, Resource-Based ViewAbstract
Purpose of Study: The study examined the effect of organizational structure on the organizational performance of East African Breweries Limited (EABL) in Nairobi, Kenya. Specifically, it assessed how organizational hierarchy, role clarity, communication, departmentalization, and delegation of decision-making authority influence organizational performance within the company.
Methodology: The study adopted a descriptive research design targeting 120 senior managers, departmental managers, and employees at EABL. A census approach was used. Primary data were collected through structured questionnaires, while secondary data were obtained from corporate reports. Data from 100 usable responses were analyzed using SPSS version 28 through descriptive statistics, correlation, and simple linear regression analysis.
Findings: The findings revealed that organizational structure was positively and significantly associated with organizational performance at EABL. Respondents reported a generally favorable perception of organizational structure, with an overall mean of 3.59, while organizational performance recorded a mean of 3.74. Pearson correlation analysis established a moderately strong positive relationship between organizational structure and organizational performance (r = 0.641, p < 0.01). Regression analysis further demonstrated that organizational structure significantly predicted organizational performance (B = 0.629, t = 8.279, p < 0.001), explaining 41.1% of the variation in organizational performance. The regression model was statistically significant (F = 68.542, p < 0.001), leading to rejection of the null hypothesis.
Conclusion: The study concludes that organizational structure significantly enhances organizational performance at EABL. Clear hierarchy, defined roles, effective communication, and appropriate departmental arrangements support performance. However, delegation of decision-making authority requires strengthening. The study recommends greater decentralization, clearer reporting relationships, stronger interdepartmental coordination, and continuous structural reviews to improve responsiveness and operational efficiency.
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