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  DOI Prefix   10.20431


 

International Journal of Managerial Studies and Research
Volume 3, Issue 8, 2015, Page No: 1-6

Organizational Structure and Accuracy of Performance Forecasting in Large Manufacturing Firms, In Kenya

E. W. Chindia1, G. P. Pokhariyal1

1.Graduate, School of Business, Prof, School of Mathematics University of Nairobi, Kenya


Citation : E. W. Chindia, G. P. Pokhariyal, Organizational Structure and Accuracy of Performance Forecasting in Large Manufacturing Firms, In Kenya International Journal of Managerial Studies and Research 2015 , 3(8) : 1-6

Abstract

This paper presents an integrative framework for understanding accuracy of performance forecasting (APF) developed from the roles of managers and their forecasting staff. The paper offers taxonomy of principal components in relation to organizational structure in the decision-making process for APF in large manufacturing firms (LMFs), in Kenya. Principal components extracted are identified, categorized and prioritized. The objective was to categorize and prioritize principal components of any type of organizational structure for management to focus on. APF is an aspect of operations management that is seldom derived correctly in many LMFs. Management can categorize and prioritize components of an organizational structure in order to ameliorate shortcomings brought about by the many structural elements, hence manage operations effectively for APF. The study identified the multiple dimensions of organizational structure in LMFs and by using factor analysis categorized them into smaller groups and prioritized same. Factor analysis was done after collecting data using a structured questionnaire administered among randomly selected LMFs. Results of the analysis indicated that dimensions of organizational structure can be condensed into three basic groups where the most important structural practices were: that tasks in LMFs' planning units were repetitive, specialists were employed and that lines of communication were clear. The second category of structural principal components indicated that jobs were highly standardized, power and decision-making decentralized and rules and procedures governed decisions. The third component showed that decisions were made by top managers, LMFs were effective in non-complex environments and there were few innovative ideas


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