ORGANIZATIONAL STRUCTURE IMPACTS ON PROJECT PERFORMANCE AMONG WORKER AT OIL AND GAS INDUSTRY

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1 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

2 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 Position : MR. MOHAMAD ROZI BIN HASSAN : SENIOR LECTURER Date :

3 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 ID Number : NUR AQILAH BINTI JAMALUDIN : PB12042 Date :

4 vii TABLE OF CONTENTS SUPERVISORS S DECLARATION STUDENT S DECLARATION TABLE OF CONTENTS DEDICATION ACKNOWLEDGEMENT ABSTRACT ABSTRAK TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES PAGE i ii vii iii vi v vi vii x xi TABLE OF CONTENTS CHAPTER 1 INTRODUCTION PAGE 1.1 Introduction Research Background Problem Statement Research Objective Research Question Research Scope Significant of Study Operational Definition Organizational Structure Functional Organizational Structure Matrix Organizational Structure

5 viii Pure Project Organizational Structure Project Performance 7 Expected Result 7 Thesis Planning 7 CHAPTER 2 LITERATURE REVIEW 2.1 Introduction Importance of oil and gas industry Relationship oil and gas between project management Organization Structure Model of structure Mechanic Structure Organic Structure Dimension of organic structure Effectiveness of organizational structure Project and organizational Project Management Structure Project organizational structure Functional organizational structure Matrix organizational structure Pure project organizational structure Dimension of project performance Project Performance Time Performance Quality Performance Relationship between variable Impact of Functional organizational structure on project performance 26 27

6 ix Impact of Matrix organizational structure on project 27 performance Impact of Pure project organizational structure on project 28 performance 2.12 Research framework Research Hypothesis 29 CHAPTER 3 RESEARCH METHODOLOGY 3.1 Introduction Research Design Research Flow Research Framework Research Method Population and sampling Questionnaire Design Development of measurement Data Analysis Descriptive Analysis Reliability analysis Likert Scale Analysis Mean Analysis Validity Analysis

7 x CHAPTER 4 DATA ANALYSIS 4.1 Introduction Data Collection Process Respondent Demographic Reliability Analysis Descriptive Statistics Pearson Correlation Analysis Regression Analysis Conclusion CHAPTER 5 CONCLUSION AND RECOMMENDATION 5.1 Introduction Major Finding Discussion on research objectives Discussion on research questions Limitation Contributions Contribution to knowledge Contribution to managerial practice Contribution to human theoretical implication Recommendation Conclusion 66

8 xi REFERENCIES 67 APPENDICIES Appendix A Gantt Chart 71 Appendix B Appendix C Questionnaire Output of SPSS 73 78

9 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 TABLE 2.4 Measure of functional organizational structure Advantages and disadvantages of functional organizational structure TABLE 2.5 TABLE 2.6 Measure of matrix organizational structure Advantages and disadvantages of matrix organizational structure 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, TABLE 3.2 TABLE Source of design questionnaire Number of Questionnaire TABLE TABLE TABLE TABLE TABLE TABLE TABLE TABLE TABLE TABLE Table of Gender Table of Age Table of Education Qualification Table of Position Table of Organizational Involvement Cronbach s Alpha Interpretation of the Level of Mean Descriptive Statistics measure of level project performance Strength of Correlation Coefficient Value Table of correlation

10 xiii LISTS OF FIGURES FIGURE NO. TITLE OF FIGURE PAGE FIGURE 2.1 Percentage of the workers that works in Oil and Gas Company in 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