AN INVESTIGATION OF ENVIRONMENT  AND ITS EFFECT ON ORGANIZATIONAL STRUCTURE (A CASE STUDY OF ECOBANK, ASABA)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Any commercial or economic activity that aims to make a profit is considered a business. Business organizations' principal goal is to generate money, grow, and survive in the environment in which they operate.

The environment in which business organizations operate is a complex, multi-faceted dynamic that has far-reaching consequences for them. By imposing restrictions on the organization, the environment tends to define its viewpoint and goals. These restrictions in the environment of an organization's objective might take the shape of competition, which places a limit on the organization's ambitions. A trade union requesting a pay raise, for example, will have an impact on the shareholder dividend. Profits are also affected by unethical behavior. All of these environments present a variety of circumstances that impact how the organization functions and what it produces.

(1998) Oghojafor The term "environment" is used in management to express all of the forces that impact on individual companies, not only the physical surroundings. The term "business environment" refers to everything that surrounds a company. It has an impact on the company's decisions, plans, processes, and results. The environment consists of social, technological, economic, legal, and political variables that are outside the control of business (STEP). It either creates possibilities for the organization or constitutes a danger to it.

Managers in any firm must engage with and respond to environmental variables, both internal and external to their companies, because business makes demands on society and society makes demands on business. Management considers the business environment to be the total of these interrelationships inside the firm and between business and society.

The ability to adapt to a complex and rapidly changing environment is critical to an organization's existence and success. It is critical for an organization's senior management to recognize opportunities and dangers in the external environment. The internal environment should concentrate on strengths and weaknesses, both potential and current. It must act quickly in order to determine where it may get a competitive advantage over its competitors. As a result, each company should monitor or search its surroundings on a regular basis. Oghojafor Oghojafor Oghojafor O (1998).

Since the oil boom in the 1960s and early 1970s, the Nigerian corporate climate has changed dramatically. Austerity measures in the early 1980s, as well as the structured adjustment program in the late 1980s, resulting from the company act of the 1960s and the allied matter decree in the 1990s, undoubtedly brought in the 1980s opportunities for some businesses, as well as problems that hampered the survival of many others.

The importance of studying the business environment arose from the fact that businesses do not operate in a vacuum, and effective management in a complex and dynamic society like Nigeria necessitates an assessment of the organization's strengths and weaknesses, as well as the opportunities and threats posed by the external environment. Organizations must adapt to these changes in order to survive and develop. The purpose of this research is to look at the influence of environmental problems on company performance.

1.2 STATEMENT OF THE PROBLEM

Banks work in a highly competitive, ever-changing environment. The high distress rate in the banking industry has been attributed to mostly internal factors such as poor corporate governance and low investment policies in the changing scenario. However, the need to examine the effect of external factors such as fiscal operations, legal requirements, inflation, and monetary policy has made this study imperative because the combination of all of these factors impacts adversity in the banking industry.

1.3 OBJECTIVE OF THE STUDY OBJECTIVE

The overall goal of the research is to:

i.        To evaluate the impact of environmental factors on banks in Nigeria.

ii.      To evaluate the company environment to determine the sort of environment that is favourable for growth and development of banks in Nigeria.

iii.    To investigate the relationship between the environment and organizational performance.

1.4 RESEARCH QUESTIONS

The following research questions guide the objective of the study.

i.        What is the impact of environmental factors on Nigerian banks?

ii.      What type of environment is favourable to the growth and development of banks in Nigeria?

iii.    What is the relationship between the environment and the organizational structure of Ecobank Nigeria?

1.5 SIGNIFICANCE OF THE STUDY

The findings of this study will be useful to commercial bank employees and management in Nigeria because they will shed light on the behaviors that need to be addressed in order to get the most out of changes in organizational structure. This would result in high levels of performance and help commercial banks accomplish their strategic goals.

This research will add to the current body of literature on this subject and will also act as a resource for academics, researchers, and students interested in conducting future research on this or a similar topic.

1.6 SCOPE OF THE STUDY

The research was limited to Ecobank Asaba, Delta State, Nigeria. The study covers the effect of the environment on the organizational structure of the bank.

1.7 LIMITATION OF STUDY

The study is limited as it was unable to cover all branches of Eco banks in Nigeria due to budget limitations and also time management.

1.8 DEFINITION OF TERMS

Environment: the natural world, as a whole or in a particular geographical area, especially as affected by human activity.

Organizational Structure: An organizational structure is a way or method by which organizational activities are divided, organized, and coordinated. 

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