ORGANISATIONAL STRUCTURE AND PERFORMANCE OF DEPOSIT MONEY BANKS IN KWARA STATE, NIGERIA

Abstract

     

The organisational structure of deposit money banks in Nigeria is predominantly centralised, thereby restricting the decision-making capacity of branch managers. This limited autonomy often hampers timely responses to local market conditions and customer needs, ultimately undermining service delivery and organisational performance. This study examined organisational structure and performance of deposit money banks in Kwara State, Nigeria. The study’s population consists of 299 top and middle managers of Tier-1 banks in Ilorin, Kwara State, Nigeria, and a sample size of 169 was determined using the Raosoft sample size calculator.  Primary data was gathered through a structured questionnaire and 160 valid responses were retrieved at response rate of 94.7%. Stratified random and proportional sample distribution was adopted. Multiple regression analysis was utilised to analyse the data and test of the hypotheses. The results of the study showed that hierarchical organisational structure had a significant positive impact on the performance of deposit money banks (β = 0.364, t = 4.958, p < 0.05. The study concluded that hierarchical organisational structure significantly impact the performance of deposit money banks. The study recommended that deposit money banks in Kwara State should enhance the hierarchical organisational structure to improve stability and accountability.