ORGANIZATIONAL STRUCTURE AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN ENUGU STATE, NIGERIA

Abstract

The study evaluated organizational structure and performance of small and Medium Enterprises (SMEs) in Enugu state. The specific objectives were to; examine the relationship between skill variety and reduced expenses and evaluate the relationship between delegation and units of output produced by SMEs in Enugu state. The total population for the study was three thousand, one hundred and ninety-four (3194). The sample size of three hundred and forty-two (342) was drawn using Freund and William’s formula at 5 percent error margin. A survey design was adopted for the study. Instrument used for data collection was the questionnaire and interviews. A total of three hundred and forty-two (342) copies of questionnaire were distributed while two hundred and seventy-eight (278) copies of questionnaire were returned. Pearson correlation coefficient(r), was used to test the hypotheses, the findings include that there was positive significant relationship between skill variety and reduced expenses of SMEs in Enugu state, r (95, n= 278) = .519 <.790, p <.05. There was positive significant relationship between delegation and units of output produced by SMEs in Enugu state, r (95, n=278) = .494 <.760, p <.05. The study concluded that skill variety and delegation had positive significant relationship with reduced expenses and units of output produced by SMEs in Enugu state. The study recommended among others that Firms should focus skill variety for effective productivity and improvement in the organisation for long term success of the business.