EFFECT OF INFORMAL STRUCTURE ON ORGANISATIONAL PERFORMANCE (CASE STUDY OF EKITI STATE UNIVERSITY TEACHING HOSPITAL, EKITI STATE)

Abstract This study aim to examine the effect of informal structure on organizational structure, with a focus on Ekiti State University Teaching Hospital. While formal structures in organizations are designed to regulate roles, communication, and decision-making processes, informal structures, consisting of social networks and personal relationships, often emerge and influence organizational behaviour. These informal structures can enhance communication, build trust, and improve collaboration, but they can also lead to inefficiencies, conflicts, and challenges for management when not properly understood or managed. The study's primary aim is to examine how informal structures within Ekiti State University Teaching Hospital interact with the formal organizational framework and impact overall performance. Specifically, it seeks to understand how informal relationships affect communication, decision-making, employee performance, and managerial control. To achieve this, the study adopts a case study approach, employing both qualitative and quantitative data collection methods, including surveys and interviews with staff across various departments in the hospital. The data gathered will be analysed to determine the extent to which informal structures influence formal operations and to identify any resulting challenges or benefits. The findings reveal that informal structures play a critical role in facilitating communication and fostering team cohesion within the hospital, but they also create difficulties in maintaining managerial control and adhering to formal processes. Based on these findings, the study provides recommendations for hospital management on how to effectively manage the balance between informal and formal structures to enhance organizational efficiency, employee performance, and overall service delivery.