ORGANIZATIONAL STRUCTURE IMPACTS ON
PROJECT PERFORMANCE AMONG WORKER AT OIL
AND GAS INDUSTRY
NUR AQILAH BINTI JAMALUDIN
Report submitted in partial fulfilment of the requirement for the award of the
Degree of Bachelor of Project Management (Hons)
Faculty of Industrial Management
UNIVERSITI MALAYSIA PAHANG
DECEMBER 2015
i
SUPERVISORS’S DECLARATION
I hereby declare that I have checked this thesis and in my opinion, this thesis is adequate in
terms of scope and quality of the award of the degree of Bachelor of Project Management
(honour).
Name of Supervisor
: MR. MOHAMAD ROZI BIN HASSAN
Position
: SENIOR LECTURER
Date
:
ii
STUDENT’S DECLARATION
I hereby declare that the work in this thesis is my own except for quotations and summaries
which have been acknowledged. The thesis has not been accepted for any degree and is not
concurrently submitted for award of another degree.
Signature
:
Name
: NUR AQILAH BINTI JAMALUDIN
ID Number
: PB12042
Date
:
vii
TABLE OF CONTENTS
PAGE
SUPERVISORS’S DECLARATION
i
STUDENT’S DECLARATION
ii
TABLE OF CONTENTS
vii
DEDICATION
iii
ACKNOWLEDGEMENT
vi
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
x
LIST OF FIGURES
xi
TABLE OF CONTENTS
CHAPTER 1
INTRODUCTION
PAGE
1.1
Introduction
1
1.2
Research Background
2
1.3
Problem Statement
3
1.4
Research Objective
4
1.5
Research Question
4
1.6
Research Scope
5
1.7
Significant of Study
5
1.8
Operational Definition
5
1.8.1 Organizational Structure
5
1.8.2 Functional Organizational Structure
5
1.8.3 Matrix Organizational Structure
6
viii
1.8.4 Pure Project Organizational Structure
6
1.8.5 Project Performance
7
1.9
Expected Result
7
1.10
Thesis Planning
7
CHAPTER 2
LITERATURE REVIEW
2.1
Introduction
9
2.2
Importance of oil and gas industry
9
2.3
Relationship oil and gas between project management
11
2.4
Organization Structure
12
2.4.1 Model of structure
13
2.4.1.1 Mechanic Structure
13
2.4.1.2 Organic Structure
14
2.5
Dimension of organic structure
16
2.6
Effectiveness of organizational structure
17
2.7
Project and organizational
18
2.7.1 Project Management Structure
18
Project organizational structure
19
2.8.1 Functional organizational structure
19
2.8.2 Matrix organizational structure
21
2.8.3 Pure project organizational structure
23
2.9
Dimension of project performance
25
2.10
Project Performance
25
2.9.1 Time Performance
26
2.9.2 Quality Performance
26
Relationship between variable
26
2.8
2.11
2.11.1 Impact of Functional organizational structure on project
performance
27
ix
2.11.2 Impact of Matrix organizational structure on project
27
performance
2.11.3 Impact of Pure project organizational structure on project
28
performance
2.12
Research framework
28
2.13
Research Hypothesis
29
CHAPTER 3
RESEARCH METHODOLOGY
3.1
Introduction
30
3.2
Research Design
31
3.2.1 Research Flow
32
3.2.2 Research Framework
33
Research Method
33
3.3.1 Population and sampling
34
3.3.2 Questionnaire Design
35
3.3.3 Development of measurement
35
Data Analysis
36
3.4.1 Descriptive Analysis
37
3.4.2 Reliability analysis
37
3.4.3 Likert Scale Analysis
37
3.4.4 Mean Analysis
38
3.4.5 Validity Analysis
38
3.3
3.4
x
CHAPTER 4
DATA ANALYSIS
4.1
Introduction
39
4.2
Data Collection Process
39
4.3
Respondent Demographic
40
4.4
Reliability Analysis
45
4.5
Descriptive Statistics
46
4.6
Pearson Correlation Analysis
51
4.6
Regression Analysis
53
4.7
Conclusion
58
CHAPTER 5
CONCLUSION AND RECOMMENDATION
5.1
Introduction
59
5.2
Major Finding
60
5.2.1 Discussion on research objectives
60
5.2.2 Discussion on research questions
61
5.3
Limitation
62
5.4
Contributions
64
5.4.1
Contribution to knowledge.
64
5.3.2 Contribution to managerial practice.
64
5.3.3. Contribution to human theoretical implication.
65
5.5
Recommendation
65
5.6
Conclusion
66
xi
67
REFERENCIES
APPENDICIES
Appendix A
Gantt Chart
71
Appendix B
Questionnaire
73
Appendix C
Output of SPSS
78
xii
LISTS OF TABLES
TABLE NO.
TITLE OF TABLE
PAGE
TABLE 2.1
Definition of mechanic structure
14
TABLE 2.2
Definition of organic structure
15
TABLE 2.3
Measure of functional organizational structure
21
TABLE 2.4
Advantages and disadvantages of functional organizational
structure
22
TABLE 2.5
Measure of matrix organizational structure
23
TABLE 2.6
Advantages and disadvantages of matrix organizational structure
24
TABLE 2.7
Measure of pure project organizational structure
25
TABLE 2.8
Advantages and disadvantages of pure project organizational
26
structure
TABLE 3.1
Table of Krejcie and Morgan, 1970
35
TABLE 3.2
Source of design questionnaire
36
TABLE 4.2.1
Number of Questionnaire
41
TABLE 4.3.1
Table of Gender
41
TABLE 4.3.2
Table of Age
41
TABLE 4.3.3
Table of Education Qualification
43
TABLE 4.3.4
Table of Position
44
TABLE 4.3.5
Table of Organizational Involvement
45
TABLE 4.4.1
Cronbach’s Alpha
46
TABLE 4.5.1
Interpretation of the Level of Mean
47
TABLE 4.5.3
Descriptive Statistics measure of level project performance
48
TABLE 4.6.1
Strength of Correlation Coefficient Value
49
TABLE 4.6.2
Table of correlation
51
xiii
LISTS OF FIGURES
FIGURE NO.
TITLE OF FIGURE
FIGURE 2.1
Percentage of the workers that works in Oil and Gas Company in
PAGE
11
Kuala Lumpur
FIGURE 2.2
Design of effective organizational
17
FIGURE 2.3
Example of WBS structure for a design project
19
FIGURE 2.3
Functional Organization structure
21
FIGURE 2.4
Matrix Organization structure
23
FIGURE 2.5
Pure project Organization structure
25
FIGURE 3.1
Research Flow
33
FIGURE 3.2
Research Framework
34