Organizational Structure and Job Performance of Private Hospitals in Port Harcourt, Nigeria

Nde Martin Alphonsus, C.O. Ofurum, J.E.O. Oshi and Ofierohor Ufuoma Earnest
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Nde Martin Alphonsus: University of Port Harcourt Business School, Nigeria.
C.O. Ofurum: University of Port Harcourt Business School, Nigeria.
J.E.O. Oshi: University of Port Harcourt Business School, Nigeria.
Ofierohor Ufuoma Earnest: University of Port Harcourt Business School, Nigeria.

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Abstract: This study investigates the relationship between organizational structure, specifically complexity, formalization, and centralization, and the job performance of employees in private hospitals in Port Harcourt, River State, Nigeria, with technology-in-use as a moderating variable. The study aims to understand how these organizational structural dimensions relate task performance, contextual performance, and employee efficiency, and to identify ways to enhance performance in healthcare settings. The problem statement highlights the challenge of maintaining high performance amidst rigid and centralized structures. A method of quantitative surveys using questionnaire administered to workers from selected private hospitals was deployed. The findings reveal that high complexity negatively affects task performance and contextual performance due to increased cognitive load and role ambiguity, while moderate complexity can enhance employee efficiency through skill development. Excessive formalization was found to stifle creativity and flexibility, leading to lower contextual performance and task performance. Surprisingly, high centralization was associated with increased task performance and contextual performance, it appeared that corrective measures are taken by the management to mitigate any possible adverse effects of centralization on the task performance and contextual performance of the employees within private hospital. Parh-Goal Theory noted that a supportive leadership addresses these emotional needs by showing concern for the well-being of employees and creating a friendly work environment. This approach is crucial in private hospitals, where the emotional burden of dealing with complex medical cases can affect performance. Further revealed is that the relationship between these structural dimensions were significantly moderated by the effective use of technology, which facilitated better communication, streamlined processes, and supported decision-making. The study concludes that while traditional hierarchical structures may ensure control and consistency, they often impede overall job performance in dynamic healthcare environments. Therefore, among the recommendation is for private hospitals to adopt more flexible, less formalization and decentralized structures, supported by advanced technology, to foster a more responsive and efficient workforce. This approach not only enhances task performance and contextual performance but also improves employee efficiency, ultimately leading to better patient outcomes and organizational success. Future research should explore longitudinal impacts and consider broader geographical contexts to validate these findings.

Date: 2024-10-23
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Published in Asian Journal of Economics, Finance and Management , 2024, 6 (1), pp.366-377

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05078625

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