The effect of Organisational Structure on Project Performance: the Case of Aga Ltd.
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Date
2011
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Abstract
Gold production for Anglogold Ashanti Ltd- Obuasi Mine (AGA Ltd) has declined significantly in recent times. One of the strategies adopted to make the mine sustainable is by implementing capital projects in order to meet the medium and long term goals. However studies have shown that an appropriate organisational structure is contingent upon the type of work performed and the environment in which the organisation conducts its’ Business. Hence the major objective of the study is to examine the relationship between the organisational structure and the performance of projects in AGA Ltd-Obuasi. The research adopts an inductive case study approach with both qualitative and quantitative research method for collecting and analysing the data. Sample of the various categories of workers was taken from the Company’s total population using convenience and purposive sampling techniques. Interviews and questionnaires were employed as the main tool of data collection for the study. A Crosstab analysis was adopted for the analyses of the relationship. The study found out that the organisational structure in place of AGA Ltd-Obuasi is mechanistic which relates to projects in a very weak matrix structure due to the nature of its operations, the strategy adopted, the size of the company and the need to respond rapidly to the dynamic complexity of the external environment. However this structure is the source of major problems in implementation of projects as the study revealed and concluded that some of the organisational structure related factors significantly impact inversely to the categories of the key performance index namely time, cost and quality. Based on this, a ‘projectised’ structure i.e a project structure was recommended to be adopted among other recommendation made by the study.
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A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Business Administration,