EFFECT OF ORGANIZATIONAL STRUCTURE ON EMPLOYEE PERFORMANCE IN SELECTED BANKS IN LOKOJA, KOGI STATE

ABSTRACT This study aimed to investigate the effect of organizational structure on employee performance in selected banks in Lokoja, Kogi State, focusing on structural hierarchy, structure formalization, coordination mechanisms, and organizational flexibility. A descriptive survey research design was adopted, and data was collected using a structured questionnaire administered to 82 employees from three selected banks in Lokoja. The sample size was determined using Taro Yemane’s formula, and the questionnaire items were designed based on a 5-point Likert scale. Data was analyzed using descriptive statistics, including means, standard deviations, and correlation analysis to examine relationships between the variables. The study found that structural hierarchy, formalization, coordination mechanisms, and organizational flexibility had significant effects on employee performance. Specifically, a balanced hierarchical structure with decentralized decision-making led to higher employee engagement and performance (mean = 4.2, SD = 0.76). Formalization at a moderate level ensured consistency and efficiency, while allowing flexibility for employee autonomy (mean = 4.1, SD = 0.68). Coordination mechanisms such as regular meetings and collaborative tools positively influenced employee performance (mean = 4.3, SD = 0.74). Furthermore, organizational flexibility and adaptability supported higher productivity by enabling employees to adjust to changes in work methods and technologies (mean = 4.4, SD = 0.71). In conclusion, the study emphasized that banks should maintain a clear but flexible organizational structure to enhance employee performance. It is recommended that banks adopt moderate formalization, improve coordination systems, and foster flexibility in their structures. Future research could extend the study by incorporating larger sample sizes and diverse regions to validate these findings further.