ABSTRACT: This study examines the impact or Organizational structure on employee performance at Bugisu Cooperative Union (BCU), Uganda, which faces inefficiency, poor communication, and employee dissatisfaction, despite its historical role in coffee production. The study addresses the key questions regarding what the key features of the organizational structure at BCU are, how this structure influence employee performance, and what strategies can be implemented, in order to improve Organizational and employee performance in the Organization. Organizational structure, as defined in existing literature, involves authority distribution, task division, communication channels, and decision making processes that take place in the Organization. The study employs explanatory research method, by utilizing primary data from 80 employee surveys and semi-structured interview with 12 managers, to assess how BCU’s hierarchical and centralized structure affects performance. Findings of the study revealed that BCU’s rigid organizational framework limits employee responsiveness and communication, negatively impacting morale and productivity. Statistical analysis showed a strong positive correlation (r = 0.68) between clear role definitions and productivity, while centralized decision-making negatively correlated (r = -0.45) with job satisfaction. Theoretical foundations, including Mintzberg’s structural configuration theory, suggest that Organizational design significantly influences Organizational performance. Centralized decision-making, typically in hierarchical structures, restrict employee autonomy, while clearer role definitions improve productivity. Empirical studies further support that effective communication as well-defined structures promote collaboration, reduce stress, and improve performance. This study concludes that BCU’s current structures impede performance and recommends decentralizing decision-making, enhancing communication, and clarifying roles to improve efficiency and job satisfaction. Aligning the structures with modern organizational needs will enable BCU to overcome operational inefficiencies that lead to a motivated workforce, improving both organizational performance and employee morale. These changes will transform BCU into a more responsive, satisfying and productive workforce.

KEYWORDS: Organizational Structure, Employee Performance, Bugisu Cooperative Union, Employee Engagement, Job Satisfaction.