Study of the Effect of Organisational Structure on Decision-Making Speed in Imo State Government Parastatals

Organisational structure shapes the speed and quality of decision-making, and examining this relationship in Imo State government parastatals, South East Nigeria, provides evidence for administrative restructuring recommendations. This study examined the effect of organisational structure on decision-making speed and quality in five Imo State government parastatals: the State Broadcasting Service, Housing Corporation, Water Corporation, Transport Corporation, and Electricity Distribution Board. A survey of 180 managers and senior officials was conducted using structured questionnaires. Structural dimensions assessed included centralisation, formalisation, span of control, and hierarchical levels. Decision-making speed was measured by time from proposal to approval for routine, tactical, and strategic decisions. Decision quality was assessed by decision reversal rates and implementation success rates. Analysis of variance and regression analysis were employed. Results showed that the number of hierarchical approval levels was the strongest predictor of decision-making delay (beta = 0.58, p < 0.001). Highly centralised parastatals took an average of 34 days longer per strategic decision than more decentralised counterparts. Formalisation (documented procedures) had a positive effect on decision quality (beta = 0.41, p < 0.01) but slowed routine decisions. Wide spans of control were associated with delegation and faster decision-making at operational levels. The study concludes that excessive centralisation is the primary structural impediment to decision speed in Imo State parastatals and recommends delegated authority frameworks with clear decision rights for each governance level. Keywords: organisational structure, decision-making, Imo State, parastatals, centralisation