International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue XII, December 2020 | ISSN 2454–6186

Review of Cost Effectiveness of Organisation Structure of Benue Cement Company Plc Gboko towards Achieving Its Marketing Objective: An Empirical Analysis

Richard Jimin Agema, Hembadoon Diaka, Bukola Rebecca Oyeleye
Department of Business Management, Faculty of Management Science, Benue State University, Makurdi, Nigeria

Abstract:- The main objective of this study is to present an empirical review of whether Benue Cement Company PLC Gboko adopted a cost-effective organization structure towards achieving its marketing objective. The study adopts mix research methods of Survey, historical, descriptive, analytical and empirical. The Company’s Population consisted of 326 top and middle level Managers and 910 for lower-level Managers. The Sample population of 44 employees were drawn for the study covering the Four levels of management. This consisted of 3 Top managers, 20 middle level managers, 9First level Supervisors, 12 Clerical staff. The data collection method adopted for the study is through questionnaire, literature reviews, company documents, and personal observations. Data analysis technique adopted for the study is simple percentages, frequency tables, and pie chart. Results of findings from the study revealed that, the Company did not adopt a cost-effective organization structure to achieve the Company’s marketing objective. The company adopted a long chain of command and communication as depicted by the company’s organizational structure as presented in appendixes I and II in variance with empirical recommendations evidence. This kind of structure is contrary to what Schewe (1987) recommended that: “for organization to survive, it should have a shorter chain of communication and command”. The Company’s restructuring effort of 1994 and 2001 did not make significant changes in the cost reduction efforts to achieve the company’s strategic business objectives, as stated in the company’s mission statement as…, “to achieve effective and efficient resources utilization” with the aim to make profit. The study recommends that to be cost effective to achieve its marketing objective, the company should have an organisation structure with a shorter Chain of command and communication and work towards reducing wastes in production activities.

Key words: Cost Effective, Benue Cement Company PLC, Organisation Structure, Marketing Objective.