DELEGATION OF AUTHORITY AND ORGANIZATIONAL PERFORMANCE - A STUDY OF SMES IN KOGI STATE

Abstract

The evaluated of delegation on both business and employee performance in recent corporate institutions cannot be overemphasized. The main objective of the study was to investigate the effect of delegation of authority on organizational performance of SMEs in Kogi State. The study adopted descriptive cross-sectional survey design. The population of the study comprises of 22,715 operators of registered small and medium enterprises (SMEs) with Corporate Affairs Commission (CAC) as at 2020. The study adopted Simple random sampling was employed and Krejcie and Morgan table for sample size determination was used giving a sample size of 379. The method of data analysis was Multiple Regression Analysis with the aid of Statistical Package for Social Science (SPSS) version 24. The study found that there is a positive and significant relationship between work discipline and organizational performance of SMEs in Kogi State with a t-statistics value of t=30.278  and p value of 0.000, it was also found that employee productivity has a positive and significant relationship with organizational performance of SMEs in Kogi State with a t-statistics value of t =39.856  and p value of 0.000 and that incentive compensation has a positive and significant relationship with organizational performance of SMEs in Kogi State with a t-statistics value of t=33.233 and p value of 0.000. It was recommended among others SMEs should implement and maintain strict work discipline policies. This can be achieved through regular training programs, clear communication of expectations, and consistent enforcement of rules. It is crucial for SMEs to invest in strategies that enhance productivity. This includes providing ongoing professional development opportunities, adopting advanced technologies, and optimizing workflow processes. SMEs should adopt robust incentive compensation schemes. These programs can include performance-based bonuses, profit-sharing plans, and other financial rewards that align employee interests with organizational goals.